If a firms output is zero, then : • AFC will be positive • AVC will be zero • Both (a) and (b) • Neither (a) and (b) please give valid explaination

SAFWAN · 21 Sept 2024

Answer is (a) Explaination AFC will be positive because there is TFC even when output is 0 however AVC never starts from zero so we can't assume AVC will be 0 when ouput is zero So option (c) or be can't be right (b) So option (a) is right answer