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In the short run, if a firm decides to close down, its total variable costs will become zero because it stops production. However, total fixed costs, which include expenses like rent and salaries, will still exist and must be paid, meaning total cost will not equal zero. Therefore, while the firm avoids variable costs, it still incurs fixed costs, resulting in total costs greater than zero.
What else can I help you with?
What is happening to average total costs when they equal marginal cost?
That is were u now got your total cost
What happens if marginal cost is equal to average total cost?
When marginal cost is equal to average total cost, it means that the cost of producing one more unit is the same as the average cost of all units produced. This indicates that the firm is operating at its most efficient level of production.
Why total revenue equal to total cost?
No total revenue is total finance in, you need to take from this the running costs of the business to get the gross profit (net sales minus the cost of goods and services sold).
When profit is maximized in a perfectly competitive firm?
At the output level at which the slopes of the total revenue and total cost curves are equal, provided the firm is covering its variable cost
What happens when the slope of the total revenue curve is equal to the slope of the total cost curve?
a. monopoly profit is maximized. b. marginal revenue equals marginal cost. c. the marginal cost curve intersects the total average cost curve. d. the total cost curve is at its minimum. e. Both A and B
What is happening to average total costs when they equal marginal cost?
That is were u now got your total cost
Fixed cost variable cost equals?
Fixed cost and variable cost is equal to total cost as per following formula: Total Cost = Fixed Cost + Variable Cost
Return on total asset is equal to?
total assets divided total cost of goods sold
Does total cost equal the fixed cost plus the vriable cost divides by volume?
Formula for Total Cost: Fixed Cost + Variable Cost + Semi-Variable Cost if there is no semi-variable cost then fixed cost + variable cost is a total cost. if we devide the total cost with volume as well then it will be cost per unit not total cost
Is the area under the marginal cost curve equal to the total variable cost?
yes
What is the meaning of shutdown point?
The shutdown point is the output level at which total revenue is equal to the total variable cost. Here the product price is also equal to its average variable cost.
What happens if marginal cost is equal to average total cost?
When marginal cost is equal to average total cost, it means that the cost of producing one more unit is the same as the average cost of all units produced. This indicates that the firm is operating at its most efficient level of production.
Why total revenue equal to total cost?
No total revenue is total finance in, you need to take from this the running costs of the business to get the gross profit (net sales minus the cost of goods and services sold).
Is this true that total costs are equal to fixed cost plus variable cost per unit?
No fixed costs do not change where variable do depending on market and amount ordered among other varies.
When the average total cost is at its minimum is it greater than MC equal to MC or smaller than MC?
Equal to MC.
When profit is maximized in a perfectly competitive firm?
At the output level at which the slopes of the total revenue and total cost curves are equal, provided the firm is covering its variable cost
What happens when the slope of the total revenue curve is equal to the slope of the total cost curve?
a. monopoly profit is maximized. b. marginal revenue equals marginal cost. c. the marginal cost curve intersects the total average cost curve. d. the total cost curve is at its minimum. e. Both A and B
