Question

Total Cost (TC) equals:

• A. Total Fixed Cost (TFC) + Total Variable Cost (TVC)
• B. Average Fixed Cost (AFC) + Average Variable Cost (AVC)
• C. Total Fixed Cost (TFC)
• D. Total Variable Cost

Hint:

At a zero level of production, variable cost is zero (\(TVC = 0\)).
This means the firm's total cost is equal to its total fixed cost (\(TC = TFC\)).

Answer 1

The Correct Option is A