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

question 14

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 total variable cost (TVC) ?

• A)$1,348
• B)$1,498
• C)$2,348
• D)$4,428

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