Which of the following cost curves starts from the origin (zero cost at zero output)?
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → TVC curve
At zero output the firm uses no variable inputs, so TVC is zero. The TVC curve therefore starts from the origin.
Option (1) TVC curve — Correct. TVC is zero at zero output and rises as output rises.
Option (2) AFC Curve — Incorrect. AFC is undefined at zero output and very large near it.
Option (3) TFC curve — Incorrect. TFC is a horizontal line at a positive height, the same at every output.
Option (4) TC curve — Incorrect. At zero output TC equals TFC, so it starts above the origin.
NCERT (2026-27): “3.7.1 Short Run Costs … In Table 3.3, we have an example of cost function of a typical firm. The first column shows different levels of output. For all levels of output, the total fixed cost is Rs 20. Total variable cost increases as output increases. With output zero, TVC is zero. For 1 unit of output, TVC is Rs 10; for 2 units of output, TVC is Rs 18 and so on. In the fourth column, we obtain the total cost (TC) as the sum of the corresponding values in second column (TFC) and third column (TVC). At zero level of output, TC is just the fixed cost, and hence, equal to Rs 20. For 1 unit of output, total cost is Rs 30; for 2 units of output, the TC is Rs 38 and so on.”
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