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

question 20

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. At Straker Industries,average variable cost (AVC) reaches its minimum value at $________.

• A)$24.50
• B)$33.60
• C)$72.80
• D)$121.80

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Expected Number

The statistically predicted average value in a distribution or experiment.

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A variable whose values depend on outcomes of a statistical experiment where the exact outcomes are uncertain.

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