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

question 17

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.
-What is total variable cost (TVC) at Greene Enterprises when average variable cost (AVC) is at its minimum?

• A) $48,000
• B) $101,101
• C) $137,222
• D) $190,476
• E) $437,212

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Definitions:

Magnuson-Moss Act

A federal law in the United States that was enacted to protect consumers from deceptive warranty practices.

Express Warranty

An explicit guarantee by a seller to a buyer that a product or service meets certain quality and performance standards.

Implied Warranty

A legal term for the assurance that a product will meet a certain standard of quality and functionality without it being explicitly stated by the seller.

Magnuson-Moss Act

A federal law in the United States aimed at improving consumer protection for goods by setting forth warranties and disclosure requirements.