Which of the following does not apply to a firm that has shut down in the short run?
A)Variable cost is zero.
B)Total revenue is zero.
C)Total cost exceeds total revenue.
D)Total cost is zero.
E)Fixed cost is positive.

Question

Quizplus · Accepted Answer

In the short run, a firm that has shut down will have zero variable costs and total revenue, but it will still incur fixed costs, so total cost cannot be zero.

Which of the Following Does Not Apply to a Firm