Use the figure below to answer the following questions.

Figure 11.3.2
-Refer to Figure 11.3.2, which illustrates short-run average and marginal cost curves. Which one of the following statements is false?
A)Average fixed cost decreases with output.
B)The vertical gap between curves B and C is equal to average variable cost.
C)Line B comes closer to line C as output increases because of a decrease in average fixed cost.
D)Curve D is the marginal cost curve.
E)The vertical gap between curves B and C is equal to average fixed cost.

Question

Use the figure below to answer the following questions.
  
Figure 11.3.2
-Refer to Figure 11.3.2, which illustrates short-run average and marginal cost curves. Which one of the following statements is false?
A)Average fixed cost decreases with output. 
B)The vertical gap between curves B and C is equal to average variable cost. 
C)Line B comes closer to line C as output increases because of a decrease in average fixed cost. 
D)Curve D is the marginal cost curve. 
E)The vertical gap between curves B and C is equal to average fixed cost.

Quizplus · Accepted Answer

The vertical gap between curves B and C is equal to average fixed cost, not average variable cost.

Use the Figure Below to Answer the Following Questions