Refer to the cost regression for Straker Industries shown below.
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 Straker Industries, average variable cost (AVC) reaches its minimum value at $________.
A) $24.50
B) $33.60
C) $72.80
D) $121.80
Correct Answer:
Verified
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