In the short run, when the firm produces zero units of output, which of the following...

In the short run, when the firm produces zero units of output, which of the following is always equals to zero?

a. total cost

b. total variable cost

c. economic profit

d. total fixed cost

e. economic loss

Solutions

Expert Solution

Ans: total variable cost

Explanation:

In the short run, when the firm produces zero units of output then there will be no variable cost. Variable costs arise when the firm starts production of output. But there is fixed cost even at zero level of output.

Rahul Sunny answered 1 year ago

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