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. At what level of output is average variable cost (AVC)at its minimum point for Straker Industries?
A)0.14
B)4.7
C)7
D)14
E)28

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.  At what level of output is average variable cost (AVC)at its minimum point for Straker Industries?
A)0.14 
B)4.7 
C)7 
D)14 
E)28

Quizplus · Accepted Answer

The Answer is C

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 $A V C = a + b Q + c Q ^ { 2 }$