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 2,000 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 b and c
Answer: E
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