The Table Given Below Shows the Average Total Cost of Production

question 87

Multiple Choice

The table given below shows the average total cost of production of a firm at different levels of the output.Table 8.5

-In the short run when output is zero, total cost is:

• A)equal to total variable cost.
• B)greater than total fixed cost.
• C)equal to total fixed cost.
• D)less than total fixed cost.
• E)less than total variable cost.

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Definitions:

Long-Run Equilibrium

A state in which all factors of production and outputs are fully adjusted to each other, and all economic forces are in balance, with no surplus or shortage.

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A mixture of lime or gypsum with sand and water that hardens when dried, used for coating walls and ceilings.

Labor

The engagement of human abilities, both physical and mental, in crafting goods and services.

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Decorative statues often placed in gardens, depicting mythological creatures known as gnomes.