Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the formAVC = a + bQ + cQ2and obtained the following results. Total fixed cost (TFC) at Straker Industries is $1,000. If Straker Industries produces 12 units of output, what is estimated total cost (TC)?

A. $4,428
B. $2,348
C. $1,000
D. $1,463


Answer: D

Economics

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