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

question 6

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 cost (TC) ?

• A)$1,000
• B)$1,463
• C)$2,348
• D)$4,428

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Definitions:

Wholly Owned Subsidiaries

Companies whose entire share capital is owned by another company, the parent company.

International Sector

The segment of an economy or business operations that involves dealing with foreign countries, including trade, investments, and regulatory practices.

Act of State Doctrine

A principle in international law that a nation is immune from being sued in another nation's courts for its sovereign acts.

Internal Actions

Measures or processes initiated within an organization to handle its affairs, without involving external enforcement or intervention.