In a Certain Industry, the Supply Curve of Any Firm

question 11

Multiple Choice

In a certain industry, the supply curve of any firm is S_i(p) = p/2.If a firm produces 6 units of output, what are its total variable costs?

• A)$34
• B)$72
• C)$54
• D)$36
• E)There is not enough information given to determine total variable costs.

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Definitions:

Specified Levels

Predetermined benchmarks or criteria that need to be met within certain contexts, such as quality standards or performance thresholds.

Hedging

A risk management strategy used to reduce or limit potential losses by taking offsetting positions in related securities or derivatives.

Price Fluctuations

Variations in the market prices of goods, services, or securities within a particular period.