
Your teacher made a mistake. The result should be 1 and not the factorial n! since those terms will cancel.
If you had n people, and you choose none of them, then there's only one way to do so. It's equivalent to the number of ways of selecting all n people where order doesn't matter.
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If your teacher was thinking about the permutation formula, then,

We get the same situation.
However, if r = n, we'll have:

And finally we arrive at the factorial n! when using the permutation formula and when r = n.