If a Firm Were to Stop Production of Its Only

question 6

Multiple Choice

If a firm were to stop production of its only product, the firm's total cost will be equal to

• A) zero.
• B) its total fixed cost
• C) its total variable cost.
• D) its opportunity cost.
• E) its average cost.

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Definitions:

Equipment

Equipment consists of the necessary tools, machinery, and other material goods required for performing specific tasks or operations within various contexts, such as a business or workshop.

Receivables

Short-term amounts due to a company from its customers, typically from sales of goods or services on credit.

Accounts Receivable

Money owed to a company by its customers for products or services that have been delivered but not yet paid for.

Inventory

The total amount of goods or materials a business has in stock, potentially for sale or production.