A total cost function will start

Name: A total cost function will start
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A total cost function will start at the origin (zero output) if there are no fixed costs. This is because the total cost at zero output is equal to the variable cost, which is zero if there are no fixed costs. Fixed costs, on the other hand, would require an expenditure even at zero output, so the total cost function would not start at zero output if there are fixed costs.

A Total Cost Function Will Start