Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the form $A V C = a + b Q + c Q ^ { 2 }$ and obtained the following results.Total fixed cost (TFC)at Straker Industries is $1,000. The estimated short-run marginal cost function (SMC)at Straker Industries is:
A) $S M C = 43.4 Q - 1.4 Q ^ { 2 } + 0.07 Q ^ { 3 }$
B) $S M C = 43.4 - 1.4 Q + 0.07 Q ^ { 2 }$
C) $S M C = 43.4 Q - 5.6 Q ^ { 2 } + 0.6 Q ^ { 3 }$
D) $S M C = 43.4 - 5.6 Q + 0.6 Q ^ { 2 }$

Question

Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the form $A V C = a + b Q + c Q ^ { 2 }$ and obtained the following results.Total fixed cost (TFC)at Straker Industries is $1,000.  The estimated short-run marginal cost function (SMC)at Straker Industries is:
A) $S M C = 43.4 Q - 1.4 Q ^ { 2 } + 0.07 Q ^ { 3 }$ 
B) $S M C = 43.4 - 1.4 Q + 0.07 Q ^ { 2 }$ 
C) $S M C = 43.4 Q - 5.6 Q ^ { 2 } + 0.6 Q ^ { 3 }$ 
D) $S M C = 43.4 - 5.6 Q + 0.6 Q ^ { 2 }$

Quizplus · Accepted Answer

The Answer of Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the form $A V C = a + b Q + c Q ^ { 2 }$ and obtained the following results.Total fixed cost (TFC)at Straker Industries is $1,000.  The estimated short-run marginal cost function (SMC)at Straker Industries is:
A) $S M C = 43.4 Q - 1.4 Q ^ { 2 } + 0.07 Q ^ { 3 }$ 
B) $S M C = 43.4 - 1.4 Q + 0.07 Q ^ { 2 }$ 
C) $S M C = 43.4 Q - 5.6 Q ^ { 2 } + 0.6 Q ^ { 3 }$ 
D) $S M C = 43.4 - 5.6 Q + 0.6 Q ^ { 2 }$

Straker Industries Estimated Its Short-Run Costs Using a U-Shaped Average AVC=a+bQ+cQ2A V C = a + b Q + c Q ^ { 2 }AVC=a+bQ+cQ2

Straker Industries Estimated Its Short-Run Costs Using a U-Shaped Average $A V C = a + b Q + c Q ^ { 2 }$