The Manager of Greene Enterprises,Inc

question 44

Multiple Choice

The manager of Greene Enterprises,Inc.,recently estimated its average variable cost AVC) function to be Greene Enterprises faces total fixed costs TFC) of $300,000.If Greene Enterprises produces 6,000 units of output,what is estimated average total cost ATC) ?

• A)$40
• B)$75.25
• C)$80
• D)$90
• E)$168.42

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Definitions:

FV Function

A type of financial function that calculates the future value of an investment based on a constant interest rate.

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A fee paid for the use of borrowed money, typically expressed as an annual percentage of the loan amount.

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