At an output of zero,total cost is
A)zero.
B)equal to fixed cost.
C)equal to variable cost.
D)cannot be found.

Name: At an output of zero,total cost is A)zero. B)equal to fixed cost. C)equal to variable cost. D)cannot be found.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

At an output of zero, there are no variable costs incurred as no production is taking place. However, fixed costs still remain, as they represent the expenses that must be paid even if no production occurs. Therefore, total cost at an output of zero is equal to fixed cost.

At an Output of Zero,total Cost Is