If a firm were to stop production of its only product, the firm's total cost will be equal to
A) zero.
B) its total fixed cost
C) its total variable cost.
D) its opportunity cost.
E) its average cost.

Question

Quizplus · Accepted Answer

If a firm stops production of its only product, it will still have to pay its fixed costs such as rent, salaries, etc. Therefore, the firm's total cost will be equal to its total fixed cost.

If a Firm Were to Stop Production of Its Only