Exhibit 7.3

-Refer to Exhibit 7.3,which shows the U-shaped cost curves for a producer.A is the marginal cost curve,B is the average variable cost curve,and C is the average total cost curve.The vertical distance between lines B and C at any level of output represents _____
A)marginal cost.
B)average total cost.
C)average variable cost.
D)average fixed cost.
E)average marginal cost.

Question

Exhibit 7.3
 
-Refer to Exhibit 7.3,which shows the U-shaped cost curves for a producer.A is the marginal cost curve,B is the average variable cost curve,and C is the average total cost curve.The vertical distance between lines B and C at any level of output represents _____
A)marginal cost. 
B)average total cost. 
C)average variable cost. 
D)average fixed cost. 
E)average marginal cost.

Quizplus · Accepted Answer

The vertical distance between the average variable cost curve (B) and the average total cost curve (C) represents the average fixed cost at any level of output, because average total cost is the sum of average variable cost and average fixed cost.

Exhibit 7.3 -Refer to Exhibit 7.3,which Shows the U-Shaped Cost Curves for U-Shaped