A fixed cost that the firm cannot avoid if it shuts down and produces zero output must be:

Name: A fixed cost that the firm cannot avoid if it shuts down and produces zero output must be:
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Quizplus · Accepted Answer

A fixed cost that the firm cannot avoid if it shuts down and produces zero output is a sunk cost. Sunk costs are costs that have already been incurred and cannot be recovered, and thus should not be taken into account in decision-making for the future.

A Fixed Cost That the Firm Cannot Avoid If It