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

question 4

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 short-run marginal cost (SMC) ?

• A)$171.40
• B)$463.20
• C)$1,348
• D)$2,348

---

Definitions:

Pain Relief

The act or an instance of reducing or eliminating discomfort or distress in the body.

Unpleasant Events

Occurrences that cause discomfort, distress, or unhappiness to an individual or group.

Stress

A physical, mental, or emotional factor that causes bodily or mental tension and may be a factor in disease causation.

Predictable

Capable of being foreseen or declared in advance, especially through analysis or experience.