The following questions 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.DEPENDENT VARIABLE:
‪
-If Straker Industries produces 20 units of output, what is estimated short-run marginal cost (SMC)?
A) $171.40
B) $463.20
C) $1,348
D) $2,348

Question

The following questions 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.DEPENDENT VARIABLE:
‪ 
-If Straker Industries produces 20 units of output, what is estimated short-run marginal cost (SMC)?
A) $171.40 
B) $463.20 
C) $1,348 
D) $2,348

Quizplus · Accepted Answer

The short-run marginal cost (SMC) is calculated based on the change in total cost associated with producing one additional unit of output. Without specific details on the cost function or total costs at different levels of output, it's not possible to accurately calculate or confirm the SMC for Straker Industries. However, given the options provided and without additional context or formulas, it's not feasible to provide a detailed explanation for the selection of choice A as the correct answer. This response is based on the assumption that there's a specific context or calculation provided elsewhere that leads to choice A being identified as the correct SMC for producing 20 units of output.

The Following Questions Refer to the Cost Regression for Straker