Fixed cost must be greater than variable cost when output is zero.

True

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False

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Solution

The correct option is A True
True, because fixed costs are incurred even when output is zero, while variable costs are incurred only after output production actually starts (so that variable costs are zero when output is zero).

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Fixed cost must be greater than variable cost when output is zero.

The correct option is A TrueTrue, because fixed costs are incurred even when output is zero, while variable costs are incurred only after output production actually starts (so that variable costs are zero when output is zero).

The correct option is A True
True, because fixed costs are incurred even when output is zero, while variable costs are incurred only after output production actually starts (so that variable costs are zero when output is zero).