Answer the question on the basis of the following cost data for a firm that is selling in a purely competitive market. $\begin{array}{ccccc}
& \text { Average } & \text { Average } & \text { Average } & \
\text { Total } & \text { Fixed } & \text { Variable } & \text { Total } & \text { Marginal } \
\text { Output } & \text { Cost } & \text { Cost } & \text { Cost } & \text { Cost }\
\hline
1 & \$ 150.00 & \$ 25.00 & \$ 175.00 & \$ 25.00 \
2 & 75.00 & 23.00 & 98.00 & 21.00 \
3 & 50.00 & 20.00 & 70.00 & 14.00 \
4 & 37.50 & 21.00 & 58.50 & 24.00 \
5 & 30.00 & 23.00 & 53.00 & 31.00 \
6 & 25.00 & 25.00 & 50.00 & 35.00 \
7 & 21.43 & 28.00 & 49.43 & 46.01 \
8 & 18.75 & 33.00 & 51.76 & 68.07 \
9 & 16.67 & 39.00 & 55.67 & 86.95 \
10 & 15.00 & 48.00 & 63.00 & 128.97
\end{array}$ Refer to the data.We can infer that,at zero output,this firm's total fixed,total variable,and total costs are:
A) zero,zero,and zero,respectively.
B) zero,$25,and $175,respectively.
C) $150,$25,and $175,respectively.
D) $150,zero,and $150,respectively.

Question

Quizplus · Accepted Answer

At zero output, a firm's total variable cost is zero because no production means no variable costs. However, total fixed costs remain because these costs are incurred regardless of the level of production. Therefore, at zero output, the firm's total fixed cost is $150, total variable cost is zero, and total cost (the sum of fixed and variable costs) is also $150.

Answer the Question on the Basis of the Following Cost