The Manager of Greene Enterprises,Inc

question 46

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 short-run marginal cost SMC) ?

• A)$20
• B)$42
• C)$72
• D)$90
• E)$100

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Definitions:

Equitable

Equitable refers to something characterized by fairness, impartiality, and justice, particularly in the way people are treated or decisions are made.

Market Failure

When the free market's distribution of goods and services is inefficient, it typically results in a reduction of societal welfare.

Inefficient Allocation

A situation where resources are not used in the best possible way, often leading to waste or unmet needs.

Negative Externality

An undesirable outcome of an economic activity that affects third parties who did not choose to incur that cost or benefit.