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. At what level of output is average variable cost (AVC) at its minimum point for Straker Industries?

A. 7
B. 14
C. 0.14
D. 28
E. 4.7


Answer: A

Economics

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