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 cost (TC)?

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 cost (TC)?

Quizplus · Accepted Answer

The correct answer is determined by applying the given cost function to the specified output level. If the cost function or the method to calculate the total cost at 12 units of output was provided in the question, the answer would involve plugging 12 into that function or method. Since the specific details on how to calculate the total cost are not provided in the question, we rely on the correct choice being provided as part of the question's context. Therefore, without the explicit cost function or calculation method, we assume B) $1,463.20 is the correct total cost for producing 12 units of output based on the information given.

The Following Questions Refer to the Cost Regression for Straker