-In the above figure, which of the following statements is FALSE?
A) The total fixed cost curve is curve C.
B) Total variable cost and total cost both increase as output increases.
C) Marginal cost is equal to the slope of curve A.
D) The vertical gap between curves A and B is equal to average fixed cost.

Question

-In the above figure, which of the following statements is FALSE?
A) The total fixed cost curve is curve C. 
B) Total variable cost and total cost both increase as output increases. 
C) Marginal cost is equal to the slope of curve A. 
D) The vertical gap between curves A and B is equal to average fixed cost.

Quizplus · Accepted Answer

The vertical gap between the total cost curve (A) and the total variable cost curve (B) is equal to the total fixed cost, not the average fixed cost. Average fixed cost is the total fixed cost divided by the quantity of output.

-In the Above Figure, Which of the Following Statements Is