At zero output, total variable cost is
A) higher than total fixed cost.
B) equal to total fixed cost.
C) unity.
D) zero.
E) substantial.

Question

Quizplus · Accepted Answer

At zero output, total variable costs are zero because variable costs change with the level of output. If there is no output, there are no variable costs incurred. Fixed costs, on the other hand, are incurred regardless of the level of output.

At Zero Output, Total Variable Cost Is