Figure 12-4 Figure 12-4 Shows the Cost and Demand Curves for a and Demand

question 6

Multiple Choice

Figure 12-4

Figure 12-4 shows the cost and demand curves for a profit-maximizing firm in a perfectly competitive market.
-Refer to Figure 12-4.If the market price is $30 and if the firm is producing output, what is the amount of its total variable cost?

• A)$7,200
• B)$6,480
• C)$5,400
• D)$3,960

---

Definitions:

Investment Center Performance

Involves the evaluation of a business unit's effectiveness in generating profits and efficiently managing its capital investments.

Return on Investment

A measure used to evaluate the efficiency or profitability of an investment, calculated by dividing net profit by the cost of the investment.

Investment Turnover

A ratio that measures the efficiency of a company in generating sales or revenues from its investment in assets.

Invested Assets

Invested assets refer to resources or capital that have been allocated to investments, including stocks, bonds, real estate, or other financial assets, aimed at generating future returns.