The figure given below shows cost curves of a firm.Figure: 8.2
In the figure,
|: Marginal cost curve
||: Average total cost curve
|||: Average variable cost curve
-Refer to Figure 8.2. At an output level of H, total fixed cost is:
A)SR.
B)LK.
C)BE.
D)area BEMN.
E)area 0EMH.

Question

The figure given below shows cost curves of a firm.Figure: 8.2
  In the figure,
|: Marginal cost curve
||: Average total cost curve
|||: Average variable cost curve
-Refer to Figure 8.2. At an output level of H, total fixed cost is:
A)SR. 
B)LK. 
C)BE. 
D)area BEMN. 
E)area 0EMH.

Quizplus · Accepted Answer

Total fixed cost is the area below the ATC curve and above the horizontal axis. At an output level of H, this area is represented by BEMN.

The Figure Given Below Shows Cost Curves of a Firm