If a firm produces nothing, its _____ equal zero.
A)variable costs
B)fixed costs
C)total costs
D)All of these are correct.

Question

Quizplus · Accepted Answer

Variable costs change with the level of output, so if a firm produces nothing, its variable costs would be zero. Fixed costs, on the other hand, do not change with the level of output and would still be incurred even if the firm produces nothing. Total costs include both fixed and variable costs, so they would not be zero if the firm has fixed costs.

If a Firm Produces Nothing, Its _____ Equal Zero