-Refer to Situation 21-3

question 183

Multiple Choice

-Refer to Situation 21-3. What are the total variable costs?

• A)$88,000
• B)$2,400
• C)$560
• D)$56,000
• E)There is not enough information to answer the question.

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Definitions:

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good supplied by producers, under the assumption of ceteris paribus (all other factors being equal).

Output

The total amount of goods or services produced by a company, industry, or economy within a specified period.

Supply Curve

A graphical representation showing the relationship between the price of a good or service and the quantity supplied for a given period.

Variable Costs

Costs that vary directly with the level of production or service provision, such as materials and labor.