Which of the following is correct if the firm described in Figure 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.

Which of the following is correct if the firm described in Figure 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.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 8SQP

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Question

Which of the following is correct if the firm described in Figure 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.

Figure 7-4
Quantity of Output
Total Fixed Cost
Total Variable Cost
$25
$25
$25
$25
$25
$10
$15
$25
$40
1
2
4

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