The Table Given Below Shows the Total Cost of Producing

question 53

Multiple Choice

The table given below shows the total cost of producing different units of the output by a competitive firm. Table 7.4

- Which of the following is correct if the firm described in Table 7.4 decides to produce nothing?

• A)Total cost will be zero.
• B)Total fixed cost will be zero.
• C)Total variable cost will be zero.
• D)Average cost will be zero.
• E)It is impossible for the firm to produce nothing in the short run.

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Definitions:

CPI

Consumer Price Index, a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care.

Overall Cost

The complete expenditure involved in producing, maintaining, and delivering a product or service, including direct and indirect costs.

Typical Consumer

An average or representative consumer whose behavior reflects general consumer spending patterns.

Bureau Of Labor Statistics

A U.S. government agency responsible for collecting and analyzing vital and detailed statistical data related to employment, wages, productivity, and other labor market activities.