Which of the following costs can be positive when output is zero?
A) Marginal cost
B) Average variable cost
C) Total fixed cost
D) Total variable cost
E) None of the above because when output is zero there are no costs.

Question

Quizplus · Accepted Answer

Total fixed cost represents the fixed expenses that a firm incurs regardless of the level of production. Therefore, these costs can still exist even when output is zero.

Which of the Following Costs Can Be Positive When Output