In a diagram with the total cost curve and the total variable cost curve, as output increases, the vertical distance between these two curves
A) decreases.
B) increases.
C) is constant.
D) gets smaller and then bigger again.

Question

Quizplus · Accepted Answer

The vertical distance between the total cost curve and the total variable cost curve remains constant as output increases because this distance represents the total fixed cost, which does not change with the level of output.

In a Diagram with the Total Cost Curve and the Total