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If a Firm Incurs a Cost of $5 Million Even

Question 58

Multiple Choice

If a firm incurs a cost of $5 million even though it is producing nothing, that $5 million is a:


A) fixed cost, and the firm is operating in the short run.
B) variable cost, and the firm is operating in the long run.
C) fixed cost, and the firm could be operating in the short run or the long run.
D) variable cost, and the firm could be operating in the short run or the long run.

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