Straker Industries Estimated Its Short-Run Costs Using a U-Shaped Average

question 23

Multiple Choice

Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the form 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 short-run marginal cost SMC) ?

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

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Definitions:

Personal Initiative

The self-starting and proactive action that an individual takes to go beyond the basic requirements and bring about positive change.

Intrinsic Motivation

The drive to engage in activities for their own sake, deriving pleasure and satisfaction from the activities themselves rather than external rewards.

Basic Psychological Needs

Essential motivational drives related to autonomy, competence, and relatedness, which humans need to foster well-being and growth.

Self-Determination Theory

A theory of motivation that suggests people are driven to grow and change by three innate and universal psychological needs: competence, autonomy, and relatedness.