Exhibit 7-8
-In Exhibit 7-8, A is marginal cost, B is average variable cost and C is average total cost, the vertical distance between lines B and C at any level of output represents

Question

Exhibit 7-8 
-In Exhibit 7-8, A is marginal cost, B is average variable cost and C is average total cost, the vertical distance between lines B and C at any level of output represents

Quizplus · Accepted Answer

The vertical distance between average total cost (C) and average variable cost (B) is the average fixed cost, as average total cost is the sum of average variable cost and average fixed cost.

Exhibit 7-8 -In Exhibit 7-8, a Is Marginal Cost, B Is Average