The total cost to a firm of producing zero units of output is
A)zero in both the short run and the long run
B)its fixed cost in the short run,zero in the long run
C)its fixed cost in the long run,zero in the short run
D)its fixed cost in both the short run and the long run
E)its variable cost in both the short run and the long run

Question

Quizplus · Accepted Answer

In the short run, fixed costs are incurred even if no output is produced. In the long run, all costs are variable, so the cost of producing zero units is zero.

The Total Cost to a Firm of Producing Zero Units