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

question 37

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.
-When Greene's output is 6,000 units, average variable cost (AVC) is

• A) rising
• B) falling
• C) greater than short-run marginal cost
• D) less than short-run marginal cost
• E) both a and d

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Definitions:

Hartford Convention

An assembly of New England Federalists during the War of 1812, which discussed grievances against the U.S. government's war policies.

Popular Self-Government

The principle or practice where the people govern themselves directly or through elected representatives, forming the basis of democratic societies.

War of 1812

A conflict fought between the United States and the British Empire from 1812 to 1815, primarily over British restrictions on American trade and America's desire to expand its territory.

Territory Expansion

The process or policy of a country stretching its boundaries or influence into new areas, often involving colonization, acquisition, or annexation.