WAEC Economics 2022 Objective — Question 20

Question 20 of 50 from the West African Examinations Council (WAEC) Economics 2022 Objective paper, with the correct answer and a full explanation.

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) must still be paid even if a firm closes down/does not produce; only some fixed costs can be avoided by shutting down, but general fixed cost obligations remain.

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