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 Straker Industries, average variable cost (AVC) reaches its minimum value at ________.
A. $72.80
B. $24.50
C. $121.80
D. $33.60
Answer: D
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