The vertical distance between a firm's average total cost curve and its average variable cost curve is its
A)marginal cost
B)sunk cost
C)total variable cost
D)total fixed cost
E)average fixed cost

Question

Quizplus · Accepted Answer

The vertical distance between the average total cost curve and average variable cost curve represents the average fixed cost. It is calculated by subtracting the average variable cost from the average total cost. Therefore, the best choice is E, average fixed cost.

The Vertical Distance Between a Firm's Average Total Cost Curve