ECONOMICS

Detailed explanation-1: -The fixed costs are those that are present even when production is zero, and therefore the variable cost is zero when output is zero.

Detailed explanation-2: -equal to marginal cost Was this answer helpful?

Detailed explanation-3: -If no production takes place, variable costs are zero. As production increases, total variable costs increase at a decreasing rate, since the marginal product for each additional worker is increasing. With diminishing marginal product, the total variable cost increases at an increasing rate.

Detailed explanation-4: -Variable cost. Variable cost is the cost that changes with the change in the level of output. Therefore, if the firm produces no output, the variable cost incurred becomes zero.

Detailed explanation-5: -The cost incurred on variable factors of production is called Total Variable Cost (TVC). These costs vary with the level of output or production. Thus, when production level is zero, TVC is also zero.