In the graph, why does the TC curve start at ₹60 rather than at zero?

Question 8

MediumOriginal question

In the graph, why does the TC curve start at ₹60 rather than at zero?

Options for question 8

AOption AThe first unit costs ₹60Correct answerYour answerBOption BFixed cost of ₹60 must be paid even when nothing is producedCorrect answerYour answerCOption CVariable cost is ₹60 at zero outputCorrect answerYour answerDOption DThe price is ₹60Correct answerYour answer

Check

Show the answer and explanation

✓CorrectNot quiteAnswer B

Correct answer: B

Explanation

1. 01

   At zero output TVC = 0, so TC = TFC = ₹60.

Concept

TC at zero output

Typical timeTypical

70 s

Your timeYours

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The rule this testsFixed and variable cost→

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