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 short-run marginal cost (SMC)?

If the current cash price is $8.80/bushel, storage costs are $0.15/bushel, August futures are currently trading at$9.20/bushel, and you expect the basis in July to be $0.20/bushel under August, then your expected profits from storing until July would be:

A. $0.05/bushel B. $-0.35/bushel C. $0.35/bushel D. $-0.05/bushel

If a perfectly competitive firm's price is less than its average total cost but greater than its average variable cost, the firm

A) is earning a profit. B) is incurring a loss. C) should shut down. D) is breaking even.