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 12 units of output, what is estimated total variable cost (TVC)?

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 12 units of output, what is estimated total variable cost (TVC)?

Quizplus · Accepted Answer

The total variable cost (TVC) for producing 12 units of output at Straker Industries is $463.20. This calculation is typically based on the variable cost per unit of production, which changes with the level of output. Without the specific variable cost function or data provided, the exact calculation process cannot be detailed, but the correct answer is selected based on the information given.

The Following Questions Refer to the Cost Regression for Straker