Which of the Following Statements Best Describes a fiRm's Costs

question 80

Multiple Choice

Which of the following statements best describes a firm's costs at a zero level of output?

• A) Total variable costs are zero but total fixed costs are positive, so total costs are positive.
• B) The firm's variable costs are zero but marginal cost is positive.
• C) Total fixed costs are zero but both marginal cost and average cost are increasing.
• D) Both fixed costs and variable costs are zero.

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