The vertical distance between the total cost and the total variable cost curves differs by an amount that
A)initially increases, but then decreases, as output increases.
B)is constant as output changes.
C)decreases as output increases.
D)increases as output increases.

Question

Quizplus · Accepted Answer

The vertical distance between the total cost (TC) and the total variable cost (TVC) curves is constant as output changes because this distance represents the total fixed cost (TFC), which does not vary with the level of output.

The Vertical Distance Between the Total Cost and the Total