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MICROECONOMICS CH : 8 CONCEPTS OF COST — Economics STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceEconomicsMICROECONOMICS CH : 8 CONCEPTS OF COST1 Mark
Question
Fixed cost must be greater than variable cost when output is zero.
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Answer

True. Because fixed costs are incurred even when output is zero, while variable costs are incurred only after production actually starts (so that variable costs are zero when output is zero).

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