The Table Given Below Shows the Total Fixed and Variable

question 72

Multiple Choice

The table given below shows the total fixed and variable costs of a firm.Table 8.3

-If the firm described in Table 8.3 decides to produce nothing, its:

• A)total cost will fall to zero.
• B)total variable cost will be equal to $30.
• C)total cost will equal $40.
• D)average total cost will equal zero.
• E)marginal cost will equal $10.

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Definitions:

Shortages

A market situation in which the demand for a product exceeds its supply at a particular price.

Farm Price-Support Programs

Government initiatives designed to stabilize or increase prices of agricultural products by buying excess supply, providing subsidies, or setting minimum prices.

Consumers

People or organizations who buy products and services for their own consumption.

Low-Income Consumers

Individuals or households with earnings that fall below a certain threshold, often qualifying them for specific benefits or considerations.