If a Firm Shuts Down for a Week, During That

question 16

Multiple Choice

If a firm shuts down for a week, during that week its:

• A) total cost is zero.
• B) total cost equals total fixed cost.
• C) total cost equals total variable cost.
• D) total variable cost exceeds total fixed cost.

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Definitions:

Tender

An offer to perform an obligation or supply goods at a fixed price.

Condition Subsequent

A condition in a contract that, if it occurs, terminates an already established right or obligation.

Tender

refers to the offer of payment of money or the performance of an obligation in order to discharge a debt or fulfill a contract.

Offering

The process or act of presenting something for acceptance, consideration, or use, such as a financial instrument or a proposal.