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.

Question

Kimberly Franczeska Iradiel · Accepted Answer

Final Answer : D, Explanation :  The supply curve S i (p) = p/2 implies that the price p is equal to 2 times the quantity supplied. If the firm produces 6 units, the price p = 2 * 6 = 12. The total variable cost is the area under the supply curve up to the quantity produced, which is 6 units. This is calculated as (1/2) * base * height = (1/2) * 6 * 12 = 36.

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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In a certain industry, the supply curve of any firm is Si(p) = p/2.If a firm produces 6 units of output, what are its total variable costs?A) $34B) $72C) $54D) $36E) There is not enough information given to determine total variable costs.

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Learning Objectives

Learning Objectives

Related questions

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.