If a firm shuts down in the short run and produces no output, its total cost will be
a. zero
b. equal to total variable cost
c. equal to total fixed cost
d. equal to explicit costs only
e. impossible to calculate
C
Economics
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Which of the following is an example of differentiated goods?
A) Books and cosmetics B) Fuel and water C) Potatoes grown by different farmers D) Tea and energy drinks
Economics
Which of the following is TRUE for the perfectly competitive firm?
A) Price and MR are always equal. B) AR is less than price. C) AR is more than price. D) Price elasticity of demand is equal to 1.
Economics