If Melissa owns a software company that incurs no fixed costs, then
A) her total cost equals her total variable cost.
B) her total cost equals zero.
C) her total variable cost is less than her total cost.
D) she will earn an economic profit.
E) her marginal cost must equal zero.

Question

Quizplus · Accepted Answer

Since there are no fixed costs, Melissa's total cost will only include variable costs such as labor, materials, and other inputs necessary for producing software. Therefore, her total cost will equal her total variable cost.

If Melissa Owns a Software Company That Incurs No Fixed