The Manager of Greene Enterprises,Inc

question 13

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.When Greene's output is 2,000 units,what is average variable cost AVC) ?

• A)$20
• B)$48
• C)$62
• D)$72
• E)$85

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Definitions:

Principal's Liability

Principal's liability is a legal concept where the principal (employer) is held responsible for the actions of their agents or employees performed within the scope of their employment.

General Rule

A principle or guideline that applies broadly or is commonly accepted as a basis for decision-making.

Implied Authority

The power assumed to be held by an agent as it is necessary to carry out his or her express authority.

Apparent Authority

The perception created by the actions of a principal, leading third parties to believe that an agent has authority to act on behalf of the principal.