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 average variable cost AVC)?
A)$19.40
B)$67.40
C)$171.40
D)$179.40

Question

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 average variable cost AVC)?
A)$19.40 
B)$67.40 
C)$171.40 
D)$179.40

Quizplus · Accepted Answer

The Answer of 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 average variable cost AVC)?
A)$19.40 
B)$67.40 
C)$171.40 
D)$179.40

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