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

question 33

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 12 units of output,what is estimated total variable cost (TVC) ?

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

---

Definitions:

Menstruation

The monthly process in which the lining of the uterus is shed, leading to bleeding through the vagina.

Sexual Maturity

The stage in an organism's life cycle when it can reproduce sexually, indicating physical development has reached a point of fertility.

Erik Erikson's Theory

A theory of psychological development that outlines eight stages of psychosocial development from infancy to late adulthood.

Competent

Competent refers to having the necessary ability, knowledge, or skill to do something successfully or efficiently.