Which of the following statements is correct?
A)In the short run, if a firm chooses to produce no output (i.e., shut down)its total costs of production will equal its total fixed costs.
B)If a firm decides to shut down, its short-run total costs will equal 0.
C)As a firm increases output in the short run, the change in total costs is equal to the change in total variable costs.
D)A firm minimizes its total costs of production when average variable cost is minimized.

Question

Quizplus · Accepted Answer

The Answer of Which of the following statements is correct?
A)In the short run, if a firm chooses to produce no output (i.e., shut down)its total costs of production will equal its total fixed costs.
B)If a firm decides to shut down, its short-run total costs will equal 0.
C)As a firm increases output in the short run, the change in total costs is equal to the change in total variable costs.
D)A firm minimizes its total costs of production when average variable cost is minimized.

Which of the Following Statements Is Correct