Figure 13-6
-Refer to Figure 13-6. 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

Question

Figure 13-6 
-Refer to Figure 13-6. 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

Quizplus · Accepted Answer

The total cost curve does not begin at the origin because fixed costs have to be incurred regardless of the amount of output produced. Therefore, even when output is zero, there are positive fixed costs that add to the total cost of production.

Figure 13-6 -Refer to Figure 13-6. Why Doesn't the Total Cost Curve