Asked by

Ginger Haines
on Oct 12, 2024

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Which statement is true?

A) Fixed cost rises as output rises.
B) Variable cost falls as output rises.
C) In the short-run,at an output of zero,total cost = zero.
D) None of these statements are true.

Variable Cost

Costs that change in proportion to the level of activity or volume of goods produced.

Fixed Cost

Costs that do not vary with the level of output or sales, such as rent, salaries, or property taxes, consistent regardless of business activity.

Output

Output refers to the total amount of goods and services produced by a country, company, or economic system.

  • Understand the difference between fixed costs and variable costs and how they relate to total cost.
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Christopher HernandezOct 15, 2024
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