Refer to the Provided Table

question 29

Multiple Choice

Refer to the provided table. The total variable cost of producing 5 units of output is

• A)$10.
• B)$14.60.
• C)$63.
• D)$73.

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Definitions:

Speculative Motive

The intent to hold cash or other assets for the purpose of benefiting from future market movements.

Precautionary Motive

The desire to hold cash or liquid assets to guard against unforeseen future needs and emergencies.

Transaction Motive

The need for cash to meet immediate and anticipated demands for payment, a key reason for holding cash in business.

Speculative Motive

The intention to hold cash or other assets in anticipation of future market fluctuations to gain financial advantages.