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

question 41

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 12 units of output,what is estimated average variable cost AVC) ?

• A)$28.04
• B)$32.40
• C)$33.33
• D)$38.60

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Definitions:

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