The manager of Greene Enterprises, Inc., recently estimated its average variable cost (AVC) function to beAVC = 88 - 0.026Q + 0.000003Q2Greene 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
Answer: E
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Two assumptions made in Gordon's early presentation of the IS-LM model were that the Federal Reserve has ________ control of the money supply and that the money demand function ________ subject to instability
A) precise, is B) precise, is not C) imprecise, is D) imprecise, is not
All of the following are examples of goods for which external costs commonly exist EXCEPT
A) cigarettes. B) automobiles. C) vaccinations. D) oil transportation.
Banks can obtain funds to make loans by borrowing reserves from other banks through the federal funds market.
Answer the following statement true (T) or false (F)
The ________ is an example of a regressive tax.
A. energy tax B. individual income tax C. tariff D. sales tax