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

question 18

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 average total cost (ATC) ?

• A)$19.40
• B)$67.40
• C)$117.40
• D)$1,348

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Definitions:

Betas

A measure of the volatility, or systematic risk, of a security or portfolio in comparison to the market as a whole.

Sharpe Measure

A method to calculate risk-adjusted return, comparing the return of an investment to its risk.

Standard Deviation

A statistical measure that indicates the extent of deviation or dispersion of a set of values from their mean.

Beta

A measure of a stock's volatility in relation to the overall market.