Exhibit 7-6 Total cost curves
-In Exhibit 7-6, the total fixed cost is:

Question

Exhibit 7-6 Total cost curves 
-In Exhibit 7-6, the total fixed cost is:

Quizplus · Accepted Answer

Total fixed cost is represented by the vertical distance between the total cost curve and the total variable cost curve at the level of output where no variable cost is incurred. In this case, the intersection point is at 1,000 units of output, and the vertical distance between the curves at this point is equal to the total fixed cost of 1,000. Therefore, the answer is B.

Exhibit 7-6 Total Cost Curves