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 2,000 units, what is total cost (TC)?
A) $144,000
B) $396,000
C) $444,000
D) $642,000
E) $846,000

Question

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 2,000 units, what is total cost (TC)?
A) $144,000
B) $396,000
C) $444,000
D) $642,000
E) $846,000

Quizplus · Accepted Answer

TC = TFC + AVC * Q = 300,000 + (88 - 0.026 * 2,000 + 0.000003 * 2,000^2) * 2,000 = $396,000

Refer to Greene Enterprises, Inc AVC=88−0.026Q+0.000003Q2A V C = 88 - 0.026 Q + 0.000003 Q ^ { 2 }AVC=88−0.026Q+0.000003Q2

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