If a firm does not produce any output,its
A) total fixed cost must be zero.
B) economic profit must be positive.
C) total variable cost must be zero.
D) total costs must be zero.
E) marginal cost must be zero.

Question

Quizplus · Accepted Answer

Total variable cost must be zero if a firm does not produce any output, because variable costs vary with the level of production. Fixed costs, however, do not vary with production levels and would still be incurred even if production is zero.

If a Firm Does Not Produce Any Output,its