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

question 51

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 what level of output is average variable cost (AVC) at its minimum point for Straker Industries?

• A)0.14
• B)4.7
• C)7
• D)14
• E)28

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