Question

At zero level of output Total Cost(TC) is equal to
(a) Total Variable cost (TVC)
(b) Average Variable cost(AVC)
(c) Total Fixed Cost (TFC)
(d) Average Fixed Cost (AFC)​

Answer 1

Answer:

it's

c) total fixed cost (TFC)

Answer 2

C is correct option that is total fixed cost (TFC)

Explanation:

C is correct option that is total fixed cost (TFC) because at 0 output fix charges will be charged for the resources being not utlised.

The vertical distance between TC and TVC always remains the same due to constant TFC. Like TVC curve, TC curve is also inversely S-shaped, due to the Law of Variable Proportions. The change in TC is entirely due to TVC as TFC is constant at all levels of output, TC = TFC at zero output as variable cost is zero.