In a Certain Industry, the Supply Curve of Any Firm

question 21

Multiple Choice

In a certain industry, the supply curve of any firm is S_i(p) = p/2.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:

Arithmetic Average

A simple mean calculated by adding a set of numbers and dividing the sum by the count of those numbers, used to determine central tendencies.

Arithmetic Average Return

The return earned in an average year over a multi-year period.

Total Percentage Return

A financial metric that measures the total return of an investment, expressed as a percentage, including all dividends and capital gains.

Dividend

A payment made by a corporation to its shareholders, usually as a distribution of profits, which can be issued in various forms such as cash payments or further shares.