Total variable cost curve originates from origin indicating

CA Foundation · Business Economics · MTP · June 2024
Total variable cost curve originates from origin indicating
(A) A. Variable cost is zero at zero level of output
(B) B. Variable cost has to be incurred at zero output
(C) C. Variable cost is diminishing'
(D) D. None of the above

Suggested Answer and Working Notes:

Correct Answer: Option (A)

A. Variable cost is zero at zero level of output

Topics: Price Determination in Different Markets

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