Exhibit 7-14 Total Cost Curve
-In Exhibit 7-14, what is variable cost when no output is being produced?
A) $0
B) $3
C) $10
D) $20
E) impossible to calculate variable cost unless we know the daily wage

Question

Exhibit 7-14 Total Cost Curve 
-In Exhibit 7-14, what is variable cost when no output is being produced?
A) $0 
B) $3 
C) $10 
D) $20 
E) impossible to calculate variable cost unless we know the daily wage

Quizplus · Accepted Answer

Variable cost is the cost that varies with the level of output. When no output is being produced, there are no variable costs.