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IIMellssa owns a soflware company that incurs no fixed costs, then \( \longrightarrow \) A) her total cest equals her total variable cost B) her total variable cost is less than her total cost C) her total cost equals zero D) her marginal cost must cqual zoro

Ask by Alexander Cox. in the United States
Mar 15,2025

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Her total cost equals her total variable cost.

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In this scenario, since IIMellssa's software company incurs no fixed costs, her total cost will be entirely composed of variable costs. This means that any costs associated with production, development, or operation fluctuate directly with the level of output. Therefore, the correct answer is A) her total cost equals her total variable cost. If a company has no fixed costs, it means all expenses can vary with the production level. This flexibility can be beneficial when sales are unpredictable, helping to adjust expenses as needed to stay financially agile in a competitive market. Hence, if production increases or decreases, the total cost will adjust accordingly!

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