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

---

Definitions:

Vasectomy

A surgical procedure for male sterilization or permanent contraception that involves cutting and sealing parts of the vas deferens.

Semen

Sperm and secretions from exocrine glands.

Menstrual Flow

The shedding of the uterine lining (endometrium) that occurs in the absence of pregnancy, resulting in bleeding from the vagina.

Uterine Lining

The layer of cells that lines the uterus, playing a key role in menstruation and pregnancy; also known as the endometrium.