Comment on the following statement: In the short run, a firm's ...

[EY67]

Comment on the following statement: In the short run, a firm's total costs will be zero if the firm chooses to produce nothing.
 
  What will be an ideal response?

Question 2

The marginal social cost is the cost of producing an additional unit of a good or service that falls on people other than the producer of the good or service.
 
  Indicate whether the statement is true or false

[taylorsonier]

Answer to Question 1

The statement is likely to be false. If a firm has any fixed costs at all, the firm's total costs will not be equal to zero even if it produces zero output.

Answer to Question 2

FALSE

[EY67]

Thank you

[taylorsonier]

Happy to help you