Asked by
Audrey Musil
on Oct 12, 2024
Verified
In the short-run,when output is zero,
A) fixed cost is zero.
B) variable cost is zero.
C) total cost is zero.
D) All of the choices are correct.
Fixed Cost
Expenses that do not vary with the level of output or sales, such as rent, salaries, and insurance.
Variable Cost
Costs that vary directly with the level of production or output, such as raw materials and direct labor expenses.
Total Cost
The complete cost of production that includes both variable and fixed expenses.
- Comprehend the importance and impact of fixed and variable costs in business operations.
- Master the knowledge of total, fixed, and variable costs, appreciating their implications for business deliberations.
Verified Answer
SA
Learning Objectives
- Comprehend the importance and impact of fixed and variable costs in business operations.
- Master the knowledge of total, fixed, and variable costs, appreciating their implications for business deliberations.