Question

At zero level of output total cost is not zero. give reason

Answer 1

Explanation:

Reason :-

At zero level of output total cost is not zero because total cost contains both total variable cost and total fixed cost. So total variable cost can be zero but total fixed cost cannot be zero. That's why total cost is not zero at 0 level of output.

Answer 2

explanation :

Reason :-

At zero level of output total cost is not zero because total cost contains both total variable cost and total fixed cost. So total variable cost can be zero but total fixed cost cannot be zero. That's why total cost is not zero at 0 level of output.