Straker Industries Estimated Its Short-Run Costs Using a U-Shaped Average $A V C = a + b Q + c Q ^ { 2 }$

question 42

Multiple Choice

Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the form $A V C = a + b Q + c Q ^ { 2 }$ and obtained the following results.Total fixed cost (TFC) at Straker Industries is $1,000. The estimated short-run marginal cost function (SMC) at Straker Industries is:

• A) \(S M C = 43.4 Q - 1.4 Q ^ { 2 } + 0.07 Q ^ { 3 }\)
• B) \(S M C = 43.4 - 1.4 Q + 0.07 Q ^ { 2 }\)
• C) \(S M C = 43.4 Q - 5.6 Q ^ { 2 } + 0.6 Q ^ { 3 }\)
• D) \(S M C = 43.4 - 5.6 Q + 0.6 Q ^ { 2 }\)

---

Definitions:

Opposition

The movement that involves bringing the thumb and a finger together.

Reposition

The act or process of placing or arranging something in a different position.

Excursion

The movement of a structure or part away from its resting position, often used in the context of muscle movement or joint mobility.

Extension

The movement by which the two ends of any jointed part are drawn away from each other, increasing the angle between them.