Figure 13-3 -Refer to Figure 13-3. Why Doesn't the Total Cost Curve

question 150

Multiple Choice

Figure 13-3
-Refer to Figure 13-3. Why doesn't the total cost curve begin at the origin (the point 0,0) ?

• A)Because variable costs are positive when output is zero
• B)Because fixed costs are positive when output is zero
• C)Because the firm is producing at the efficient scale
• D)Because the firm is maximizing profits

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Definitions:

Operating Cash Flow

A measure of the cash a company generates from its regular business operations, indicating its ability to generate sufficient revenue to cover its operational expenses.

Fixed Asset Value

The net value of a company's physical assets, like buildings and machinery, after accounting for depreciation or impairment.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the business's normal operating cycle, whichever is longer.

Fixed Assets

Fixed assets, also known as non-current assets, are long-term physical assets used in the operations of a business.