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Business Arithmetic — Entrepreneurship STD 12 Commerce — Question

CBSE BoardEnglish MediumSTD 12 CommerceEntrepreneurshipBusiness Arithmetic3 Marks
Question
At zero level of output, total expenses are also zero. Do you agree? Why or why not?
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Answer

At zero level of output, total cost is not zero as the business has to bear certain fixed cost even at this level, such as salary of the administrative staff, rent of premises, etc.

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