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

question 25

Multiple Choice

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

• A)$8
• B)$6
• C)$2
• D)$4
• E)There is not enough information given to determine total variable costs.

Know the distinction between price elastic and price inelastic demand.

Understand the conditions under which a tax might not reduce consumption of a good.

Appreciate the role of government in regulating consumption through taxation.

Understand the concept of apparent movement and its application.

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Definitions:

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise made to another, when the latter has reasonably relied on that promise to their detriment.

Consideration

A crucial element in contract law, referring to something of value promised to another when forming a contract.

Bilateral Contracts

Contracts involving two parties where each party makes a promise to the other.

Unilateral Contracts

Contracts in which one party makes a promise in exchange for an act by the other party.