If a Firm Does Not Produce Any Output,its

question 110

Multiple Choice

If a firm does not produce any output,its

• A) total fixed cost must be zero.
• B) economic profit must be positive.
• C) total variable cost must be zero.
• D) total costs must be zero.
• E) marginal cost must be zero.

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Definitions:

Consignment

An arrangement where goods are left in the possession of another party to sell, but the owner retains ownership until the goods are sold.

Positive Assurance

Certification or guarantee often required in auditing, indicating that financial statements and records accurately reflect the entity's financial status.

Repudiation

The refusal to accept or be associated with, often involving a contract or agreement.

Frustration of Purpose

A legal defense allowing for the termination of a contract when an unexpected event undermines the contract's core purpose.