Question

Why fixed cost must be greater than variable cost when output is zero?

Answer 1

________ʜᴇʏ ᴍᴀᴛᴇ_______

Fixed cost must be greater than variable cost when output is zero because fixed cost are incurred even when output is zero,while variable cost are incurred only after output actually starts,so that variable cost are zero when output is zero.

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Answer 2

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$\huge\boxed{Answer}$________✌✌

Variable Costs. In the above diagram, the variable cost curve starts from zero. It means when output is zero, the variable cost is zero, but as production increases the variable cost increases. It keeps rising to the point that economies of scale cannot lower the per unit cost anymore hence the steep incline.