What is the correct answer?


If a firm produces zero output in the short period then which statement is true?

A. Its total cost will be zero

B. Its variable cost will be positive

C. Its fixed cost will be positive

D. Its average cost will be zero

Correct Answer :

C. Its fixed cost will be positive

Related Questions

The MC curve cuts the AVC and ATC curves: The elliptical isoquant represents the: A demand curve which is horizontal and parallel to x-axis represents: Short run cost curves are influenced by: At the shut-down point in perfect competition: Demand for a commodity is elastic when it has The feasible part of the demand curve for the monopolist who is charging… Economies of large-scale production: Isocost line shows the combinations of labor and capital where a firms… In Bertrand model, the entry of new firms is: In modern theory, LAC = LMC after the attainment of: The marginal revenues are derivatives of: The law of variable proportions comes into being when: Diminishing returns occur when a firm: Capital and Development Planning is the work of: On an indifference map higher indifference curves show: The point where the supply and demand curves intersect on a graph determines: In the real world, some competitive firms owns specialized resources that… If the demand curve remains unchanged and supply increases, the price… If the commodity is inferior then the increase in income of the consumer… If in the long run all factor inputs are increased three times and the… The kinked demand curve comes into being where: Extension (expansion) and contraction of demand are result of: In cournot model, during the process of adjustment, the number of firms: Demand of a commodity is elastic when: Law of Returns to Scale shows: If the prices of goods rise then: Under pure monopoly, there will be: The indifference curve technique: Whenever a group of monopolistic competitors attains equilibrium, the…