Assume that we only have data on total cost when output is equal to zero and no other cost information at our disposal. How could we possibly know what the fixed costs are for the firm?
What will be an ideal response?
If we know what the total costs are at an output level of zero we don't need any more information to figure out the fixed costs. In this case the fixed costs would equal to the total costs since at an output level of zero there wouldn't be any variable costs. Since total costs is the sum of the fixed and variable costs this is what allows us to say that total costs equal the fixed costs of the firm.
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