In a Certain Industry, the Supply Curve of Any Firm

question 20

Multiple Choice

In a certain industry, the supply curve of any firm is S_i(p) = . If a firm produces 5 units of output, what are its total variable costs?

• A) $50
• B) $23
• C) $37.50
• D) $25
• E) There is not enough information given to determine total variable costs.

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Definitions:

Personal Guaranty

A legal commitment by an individual to repay a loan or debt in the event that the primary borrower defaults.

Main Purpose Rule

A legal principle that exempts a guarantor from the requirement of a written contract if the primary intent of the guarantee is to serve the guarantor's own interests.

Debtor

An individual or entity that owes money to another party.

Foreclosure Proceeding

A legal process by which a lender seeks to recover the balance of a loan from a borrower who has stopped making payments by forcing the sale of the asset used as the collateral for the loan.