Asked by
Mafer De Los Santos
on Oct 12, 2024Verified
At an output of zero,total cost is
A) zero.
B) equal to fixed cost.
C) equal to variable cost.
D) cannot be found.
Fixed Cost
Fixed cost is an expense that does not change with the level of production or sales, such as salaries, rent, and insurance.
Variable Cost
Costs that change directly with the level of production or service output.
Total Cost
The aggregate expenditure incurred by a business to produce, buy, or sell goods and services, including fixed and variable costs.
- Distinguish among total cost, variable cost, and fixed cost in the realm of production activities.
Verified Answer
EO
Learning Objectives
- Distinguish among total cost, variable cost, and fixed cost in the realm of production activities.