Which of the following,necessarily,equals zero when the firm's short-run output level is zero?
A)sunk costs
B)fixed costs
C)implicit costs
D)variable costs
E)opportunity costs

Question

Quizplus · Accepted Answer

Variable costs are costs that vary with the level of output. When output is zero, variable costs are also zero because they are directly tied to production levels.

Which of the Following,necessarily,equals Zero When the Firm's Short-Run Output