Total Cost Includes Fixed Costs Incurred Regardless of Output Steps: - Define total cost (TC) as the sum of total fixed cost (TFC) and total variable cost (TVC). - Note that TFC remains constant at all output levels, including zero, while TVC is zero when output is zero. - Thus, TC equals TFC when output is zero, meaning some costs must still be covered. - Evaluate options: A describes decreasing costs (incorrect), B restates the definition (accurate but not the focus), C defines average cost (wrong), D highlights the inescapability of fixed costs in TC. Why D is correct: - Total cost must be paid even at zero output because it includes fixed costs, which are incurred regardless of production levels, per the economic definition of TC = TFC + TVC. Why the others are wrong: - A: Total cost rises with output due to increasing variable costs, not falls. - B: While true, it describes the calculation method, not a unique property like inescapability at zero output. - C: Dividing total cost by output yields average total cost, not …