Final answer:
Total cost at the point where total product (Q) is zero is equal to fixed costs, as these costs are incurred irrespective of production output.
Step-by-step explanation:
At the point on a graph where total product (Q) is zero, total cost is equal to fixed costs. This is because fixed costs are incurred regardless of the level of production, including when there is no output. Variable costs, on the other hand, are dependent on the level of production and would be zero when output is zero. Thus, the total cost at a production level of zero will just be the fixed costs.
This concept is often represented graphically where fixed costs are shown as the vertical intercept of the total cost curve. In this scenario, when the quantity of output produced is zero, the costs that remain are those that do not vary with production volume, which are the fixed costs.
The point on the graph where total product (Q) is zero represents zero production. At this point, the total cost is equal to the fixed costs, which are the costs incurred even when there is no output. Fixed costs are the vertical intercept of the total cost curve and do not include any variable costs. Therefore, at zero production, the total cost is equal to the fixed costs.