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. The estimated short-run marginal cost function (SMC) at Straker Industries is:

A. SMC = 43.4 ? 5.6Q + 0.6Q2
B. SMC = 43.4 ? 1.4Q + 0.07Q2 
C. SMC = 43.4Q ? 5.6Q2 + 0.6Q3 
D. SMC = 43.4Q ? 1.4Q2 + 0.07Q3


Answer: A

Economics

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