Answer the question on the basis of the following cost data. Output Average Fixed Cost 1 $ 50.00 2 3 A 5 6 • $0. . 25.00 16.67 . 12.50 10.00 8.37 7.14 Average Variable Cost $ 100.00 7 8 6.25 87.50 If the firm closed down in the short run and produced zero units of output, its total cost would be Multiple Choice $50. $150. $100. 80.00 66.67 65.00 68.00 73.33 80.00

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Cost of Production

The entire idea of the cost of production or production cost is applied corresponding, or we can say that it is related to monetary cost. Money cost refers to any money expenditure which the firm or supplier, or producer undertakes in purchasing or hiring factor of production or factor services.