Question

Why doesn't the total cost curve begin at the origin (the point 0,0)?

a. because the firm is maximizing profits
b. because fixed costs are positive when output is zero
c. because the firm is producing at the efficient scale
d. because variable costs are positive when output is zero?

Answer 1

Answer – B (because fixed costs are positive when output is zero)

The total cost curve begin at the origin (the point 0,0) because fixed costs are positive when output is zero, so the point 0,0 is not a possible combination on the total cost curve