If a firm's fixed cost is $10,000 and the firm produces zero output, the firm's total cost to produce zero output is less than $10,000.

Name: If a firm's fixed cost is $10,000 and the firm produces zero output, the firm's total cost to produce zero output is less than $10,000.
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Quizplus · Accepted Answer

Fixed costs are costs that do not change with the level of output, so if a firm's fixed cost is $10,000, the total cost to produce zero output is exactly $10,000, as there are no variable costs to add when no output is produced.

If a Firm's Fixed Cost Is $10,000 and the Firm