Refer to the short-run information provided in Figure 8.5 below to answer the question(s) that follow

Figure 8.5
-Refer to Figure 8.4. The vertical distance AB represents
A) total fixed costs.
B) marginal costs.
C) average fixed costs.
D) average total costs.

Question

Refer to the short-run information provided in Figure 8.5 below to answer the question(s) that follow

Figure 8.5
-Refer to Figure 8.4. The vertical distance AB represents
A) total fixed costs. 
B) marginal costs. 
C) average fixed costs. 
D) average total costs.

Quizplus · Accepted Answer

The vertical distance AB represents total fixed costs, as it is the portion of the total costs that does not change with the level of output.

Refer to the Short-Run Information Provided in Figure 8