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    Exam 21: The Costs of Production
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    Sam's Surf Shop Has Total Costs of $2,000 When It
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Sam's Surf Shop Has Total Costs of $2,000 When It

Question 121

Question 121

Multiple Choice

Sam's surf shop has total costs of $2,000 when it is not producing any surfboards.This means that


A) Variable costs are $2000.
B) Fixed costs are $2,000.
C) The shop is very inefficient in its production.
D) Fixed costs are zero.

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