Asked by
Natalia Martinez
on Oct 08, 2024Verified
If a firm decides to produce no output in the short run,its costs will be:
A) its marginal costs.
B) its variable costs.
C) its fixed costs.
D) zero.
Fixed Costs
Expenses that do not vary with the level of output or sales, such as rent, salaries, and insurance.
Marginal Costs
The hike in total financial outlay required for the fabrication of one additional unit of a product or service.
Variable Costs
Costs that change in proportion to the level of production or business activity, such as raw materials and direct labor expenses.
- Perceive the linkage between different cost elements, including fixed, variable, total, marginal, and average, and their influence on output quantities in the short-term scope.
Verified Answer
TP
Learning Objectives
- Perceive the linkage between different cost elements, including fixed, variable, total, marginal, and average, and their influence on output quantities in the short-term scope.