Figure 13-3
-Refer to Figure 13-3. Why doesn't the total cost curve begin at the origin (the point 0,0)?
A)Because variable costs are positive when output is zero
B)Because fixed costs are positive when output is zero
C)Because the firm is producing at the efficient scale
D)Because the firm is maximizing profits

Question

Figure 13-3 
-Refer to Figure 13-3. Why doesn't the total cost curve begin at the origin (the point 0,0)?
A)Because variable costs are positive when output is zero 
B)Because fixed costs are positive when output is zero 
C)Because the firm is producing at the efficient scale 
D)Because the firm is maximizing profits

Quizplus · Accepted Answer

The total cost curve does not begin at the origin because even when output is zero, the firm incurs fixed costs. Fixed costs are expenses that do not change with the level of output, such as rent, salaries, and insurance.

Figure 13-3 -Refer to Figure 13-3. Why Doesn't the Total Cost Curve