Figure 7.5
-Refer to Figure 7.5.The vertical difference between curves F and G measures
A)average fixed costs.
B)marginal costs.
C)fixed costs.
D)sunk costs.

Question

Figure 7.5 
-Refer to Figure 7.5.The vertical difference between curves F and G measures
A)average fixed costs. 
B)marginal costs. 
C)fixed costs. 
D)sunk costs.

Quizplus · Accepted Answer

The vertical difference between curves F and G represents the total fixed costs, which can then be divided by the quantity produced to obtain average fixed costs. Therefore, the correct choice is A) average fixed costs.

Figure 7.5 -Refer to Figure 7.5.The Vertical Difference Between Curves F and Curves