Figure 12-6 -Refer to Figure 12-6.Why Doesn't the Total Cost Curve Begin

question 474

Multiple Choice

Figure 12-6
-Refer to Figure 12-6.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:

Foreign Capital Inflow

The entry of investment from external sources into a country, typically in the form of foreign direct investment (FDI), portfolio investment, or loans, contributing to economic development.

Foreign Exchange Reserves

Assets held on reserve by a central bank in foreign currencies, used to back liabilities and influence monetary policy.

Current Account

A component of a country's balance of payments that measures the trade in goods and services, plus net earnings on investments, and direct transfers.

Capital Account

Part of a country's balance of payments, recording the net change in asset ownership and investments.