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If a firm shuts down in the short run and produces no output, its total cost will be:

a. equal to the variable cost.

b. equal to the fixed cost.

c. equal to zero.

d. equal to only explicit costs.

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Sonia Dhawan
Sonia DhawanLv10
28 Oct 2020
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Related questions

The loss of a purely competitive firm that shuts down in the short run: 
 
A)is equal to its total variable costs. 
 
B)is zero
 
C)is equal to its total fixed costs. 
 
D)can not be determined.

Which of the following statements best describes the price, output, and profit conditions of monopolistic competition?

A. Price will equal marginal cost at the profit-maximizing level of output: profits will be positive in the long-run.

B. Price will always equal average variable cost in the short run and either profits or losses may result in the long run.

C. Marginal revenue will equal marginal cost at the sort run, profit-maximizing level of output; in the long run, economic profit will be zero.

D. Marginal revenue will equal the average total cost in the short run. long-run economic profits will be zero.

1. A firm's total cost of producing 50 units of output is $1,000. At this output level, average fixed costs are equal to $10. It follows that the firm's average variable costs are equal to _____.

2. To maximize profits, a price-taking (i.e., competitive) firm should produce its output up to the level where

a. the market price of the firm's product is equal to its total variable cost.

b. the market price of the firm's product is equal to its s total cost.

c. the market price of the firm's product is equal to its marginal cost.

d. marginal cost is equal to average cost.

e. none of the above.

3. To minimize losses, a competitive firm should shut down if the price is less than

a. average cost.

b. average variable cost.

c. total cost.

d. marginal cost.

e. average total fixed cost

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