A firm that closes down will still incur
ECONOMICS
WAEC 2022
A firm that closes down will still incur
- A. variable cost
- B. fixed cost
- C. total cost
- D. marginal cost
Correct Answer: B. fixed cost
Explanation
A firm that shut down will earn zero revenue and its variable cost of producion is also zero, so the firm's total cost of production is equal to its fixed cost. However, the firm will still incur fixed cost.
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