GCE Economics 2022 Objective — Question 20
Question 20 of 50 from the General Certificate of Education (GCE) Economics 2022 Objective paper, with the correct answer and a full explanation.
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A firm that closes down will still incur
- A. variable cost
- B. fixed costCorrect
- C. total cost
- D. marginal cost
Explanation
Fixed costs (e.g. rent) remain the same regardless of the level of output, and continue even if the firm stops producing.
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