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

question 18

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. If Straker Industries produces 20 units of output,what is estimated average total cost (ATC) ?

• A)$19.40
• B)$67.40
• C)$117.40
• D)$1,348

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Definitions:

FUTA Taxes

Federal unemployment taxes levied on employers to fund state workforce agencies and unemployment insurance for workers who have lost their jobs.

Calendar Quarter

A period of three months on the calendar used for financial and business reporting, starting from the beginning of January, April, July, or October.

Form W-2

An annual form issued by employers to each employee, reporting the employee's yearly wages and the amount of taxes withheld from their paycheck.