When graphing a cost function, the total variable cost is the intercept, which is the point on the vertical axis where the cost function begins.

Name: When graphing a cost function, the total variable cost is the intercept, which is the point on the vertical axis where the cost function begins.
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Question

Quizplus · Accepted Answer

The intercept on the vertical axis represents the total fixed cost, not the total variable cost. Total variable cost changes with the level of output and does not start at the intercept.

When Graphing a Cost Function, the Total Variable Cost Is