Question

Which cost cannot be zero?

• A. Marginal cost
• B. Fixed cost
• C. Variable cost
• D. Opportunity cost

Hint:

Fixed costs remain constant regardless of the level of output, while variable costs change with production.

Answer 1

The Correct Option is B

Step 1: Understanding the costs.
Fixed costs are costs that do not change with the level of output, such as rent or salaries. These costs cannot be zero in the short term, even if no production takes place.

Step 2: Conclusion.
Thus, the correct answer is option (2) Fixed cost.