Suppose Bev's Bags makes two kinds of handbags-large and small. Bev rents an industrial space where she keeps the fabric, the industrial sewing machine, her measuring board and cutting shears, extra needles, thread and buttons, and labels. If Bev were to produce no bags, which of the following is true regarding Bev's costs?
a. The fixed cost of thread would stay the same.
b. The variable cost of cutting shears would drop to zero.
c. All are correct.
d. The variable cost of fabric would drop to zero.
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