-In Figure 4.2, the reason that point A is not through the origin but starts up on the vertical axis is that

Name: -In Figure 4.2, the reason that point A is not through the origin but starts up on the vertical axis is that
Brand: Quizplus
Rating: 4.7 (61 reviews)

Question

Quizplus · Accepted Answer

The reason point A starts up on the vertical axis is due to the presence of fixed costs. Fixed costs are expenses that do not change with the level of output, such as rent or salaries, and are incurred even when production is zero.