At Zero Output, Total Variable Cost Is

question 180

Multiple Choice

At zero output, total variable cost is

• A) higher than total fixed cost.
• B) equal to total fixed cost.
• C) unity.
• D) zero.
• E) substantial.

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Definitions:

Accounts Receivable

Money owed to a company by its clients or customers for goods or services delivered but not yet paid for.

Accounts Payable

Liabilities of a business that represent its obligations to pay off short-term debts to its creditors or suppliers.

Common Stock

A form of investment indicating a share in a company's ownership, entitling the holder to a portion of its profits or losses.

Revenue

The income that a business receives from its normal business activities, typically from the sale of goods and services to customers.