The figure given below shows three Short Run Average Total Cost (SRATC) curves and the Long Run Average Total Cost (LRATC) curve of a firm.Figure 8.3

-In the long run, if the output of a firm is zero then its total cost will be equal to its total fixed cost.

Question

The figure given below shows three Short Run Average Total Cost (SRATC) curves and the Long Run Average Total Cost (LRATC) curve of a firm.Figure 8.3
 
-In the long run, if the output of a firm is zero then its total cost will be equal to its total fixed cost.

Quizplus · Accepted Answer

In the long run, all costs are variable, so if output is zero, total cost is also zero.

The Figure Given Below Shows Three Short Run Average Total