Technically speaking, when the firm's output level is zero, its total revenue equals
A) zero
B) its fixed cost
C) its variable cost
D) its marginal revenue
E) its average revenue

Question

Quizplus · Accepted Answer

When a firm's output level is zero, it is not selling any goods or services, hence it generates no revenue. Total revenue is calculated as the price per unit times the number of units sold; if no units are sold, total revenue is zero.

Technically Speaking, When the Firm's Output Level Is Zero, Its