The Supply Curve of Any Firm Is S_i(p)= P/2

question 19

Multiple Choice

the supply curve of any firm is S_i(p) = p/2.If a firm produces 4 units of output, what are its total variable costs?

• A)$16
• B)$14
• C)$24
• D)$32
• E)There is not enough information given to determine total variable costs.

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Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing to purchase at a given price over a specified period.

Inelastic

Describes a market situation where the demand for a product or service is relatively unchanged by price variations.

Elastic

Describes a situation where the quantity demanded of a product or service significantly changes in response to a change in its price.

Demand Curve

A graph showing how the demand for a commodity or service varies with changes in its price.