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:

Total Cost

The complete sum of money required for the production of goods or services, including expenses that stay the same and those that vary.

Average Total Cost

The sum of all production costs divided by the total quantity produced, indicating the cost per unit of output.

Average Variable Cost

The cost per unit of a good or service that varies with the level of output, excluding fixed costs.

Total Fixed Cost

The sum of all costs that remain constant regardless of the level of production or output.