Figure 13-5
-Refer to Figure 13-5.Why doesn't the total cost curve begin at the origin (the point 0,0)?

Question

Figure 13-5 
-Refer to Figure 13-5.Why doesn't the total cost curve begin at the origin (the point 0,0)?

Quizplus · Accepted Answer

The total cost curve does not begin at the origin because fixed costs are positive when output is zero. Fixed costs are the costs that a firm must pay regardless of the level of output, such as rent or equipment. These costs must be paid even if the firm produces nothing, which is why the total cost curve starts above the origin at the point where fixed costs are incurred.

Figure 13-5 -Refer to Figure 13-5.Why Doesn't the Total Cost Curve Begin