Asked by
Addison Croushorn
on Dec 11, 2024
Verified
If a firm produces nothing, which of the following costs will be zero?
A) total cost
B) fixed cost
C) opportunity cost
D) variable cost
Fixed Cost
Expenses that do not vary with the level of output or sales, such as rent, salaries, or insurance premiums.
Variable Cost
Expenses that vary in proportion to the volume of goods or services produced in a business.
Opportunity Cost
The forfeiture of potential benefits from other options by selecting a specific one.
- Become familiar with the notions of variable and fixed expenditures and their repercussions on total cost.
Verified Answer
AS
Learning Objectives
- Become familiar with the notions of variable and fixed expenditures and their repercussions on total cost.