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

question 14

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. 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

---

Definitions:

Carrier Molecules

Molecules that facilitate the transport of substances across a cell membrane, including ions, sugars, and small molecules, by undergoing a change in shape.

Active Transport

The movement of a substance across a cell membrane from an area of low concentration to an area of high concentration.

Passive Mechanisms

Processes that occur without the input of energy, such as osmosis or diffusion, often in biological contexts.

Nucleic Acids

Biological molecules essential for life, including DNA and RNA, that carry genetic information in cells.