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Cost Curves · Question 11 of 62

Question 11

MediumOriginal question

Read the two statements and choose the correct option.

I. Total variable cost is zero when output is zero.

II. Total cost is zero when output is zero, in the short run.

Options for question 11

Show the answer and explanation
CorrectNot quiteAnswer A

Correct answer: A

Explanation

  1. I is true: no output, no variable inputs.

  2. II is false: fixed cost is still there, so TC = TFC.

Concept
Costs at zero output
Typical time
70 s
Your time
—
The rule this testsFixed and variable cost
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Ten questions from Cost Curves, at your own pace.

Practise this chapter →

Ten questions from Cost Curves, at your own pace.

Practise this chapterAll 62 questions in Cost CurvesRevise the notes for Cost Curves