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 average variable cost (AVC)?
A. $32.40
B. $38.60
C. $28.04
D. $33.33
Answer: B
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