Answer the question on the basis of the following cost data: $\begin{array}{c}
\begin{array}{c}
\
\
\underline{\text {Output}}\
1 \
2 \
3 \
4 \
5 \
6 \
7 \
8
\end{array}
\begin{array}{c}
\text {Average}\
\text {Fixed}\
\underline{\text {Cost }}\
\$ 50.00 \
25.00 \
16.67 \
12.50 \
10.00 \
8.37 \
7.14 \
6.25

\end{array}
\begin{array}{c}
\text {Average}\
\text {Variable}\
\underline{\text {Cost }}\
\$ 100.00 \
80.00 \
66.67 \
65.00 \
68.00 \
73.33 \
80.00 \
87.50
\end{array}
\end{array}$
Refer to the data.If the firm closed down in the short run and produced zero units of output,its total cost would be:

Question

Answer the question on the basis of the following cost data: $\begin{array}{c}
\begin{array}{c}
\
\
\underline{\text {Output}}\
1 \
2 \
3 \
4 \
5 \
6 \
7 \
8
\end{array}
\begin{array}{c}
\text {Average}\
\text {Fixed}\
\underline{\text {Cost }}\
\$ 50.00  \
25.00 \
16.67 \
12.50 \
10.00 \
8.37 \
7.14 \
6.25

\end{array}
\begin{array}{c}
\text {Average}\
\text {Variable}\
\underline{\text {Cost }}\
 \$ 100.00  \
80.00 \
66.67 \
65.00 \
68.00 \
73.33 \
80.00 \
87.50
\end{array}
\end{array}$
 Refer to the data.If the firm closed down in the short run and produced zero units of output,its total cost would be:

Quizplus · Accepted Answer

In the short run, if a firm shuts down and produces zero units, it still incurs its fixed costs. The table shows the average fixed cost at various levels of output, starting at $50.00 when one unit is produced. Since fixed costs do not vary with output, the total fixed cost remains $50.00 even at zero production. Variable costs, which depend on the level of output, would be $0 at zero production. Therefore, the total cost if the firm shuts down would be its fixed costs, which are $50.

Answer the Question on the Basis of the Following Cost