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 20 units of output, what is estimated average total cost (ATC)?
A. $67.40
B. $117.40
C. $19.40
D. $1,348
Answer: B
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a. the total utility derived from the goods and services. b. the marginal utility derived from the goods and services. c. the availability of raw materials for producing the goods and services. d. the cost of producing the goods and services. e. whether the goods are legal, since the laws affect the position of both supply and demand curves.
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Assume the economy is at point D and it moves to a hypothetical point E located midway between points A and D. Which of the following would have to happen for the economy to move from point D to point E?
a. The price level would have to increase.
b. The price level would have to decrease.
c. Aggregate expenditure would have to increase.
d. Aggregate expenditure would have to decrease.