Refer to Greene Enterprises, Inc $$A V C = 88 - 0.026 Q + 0.000003 Q ^ { 2 }$$

question 12

Multiple Choice

Refer to Greene Enterprises, Inc., whose manager recently estimated its average variable cost (AVC) function to be

$$A V C = 88 - 0.026 Q + 0.000003 Q ^ { 2 }$$
Greene Enterprises faces total fixed costs (TFC) of $300,000.
-At what level of output does average variable cost (AVC) reach its minimum value for Greene Enterprises?

• A) 800
• B) 3,144
• C) 3,800
• D) 4,333
• E) 51,672

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Definitions:

Ecological Niche

The role and position a species has in its environment; how it meets its needs for food and shelter, how it survives, and how it reproduces.

Local Environment

The specific surroundings or conditions in which a person, plant, or animal lives or operates.

Restriction

The limitation or control of someone or something, or the action of such limitation.

Community Ecology

The description and analysis of patterns and processes within the community.