Statement I: At an output of 0,variable cost is always 0.
Statement II: Total cost less fixed cost equals variable cost.

Name: Statement I: At an output of 0,variable cost is always 0. Statement II: Total cost less fixed cost equals variable cost.
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Question

Quizplus · Accepted Answer

Variable costs are costs that vary with the level of output, so at an output of 0, variable costs are indeed 0. Total cost is the sum of fixed and variable costs, so subtracting fixed costs from total costs gives variable costs.

Statement I: at an Output of 0,variable Cost Is Always