Use the following figure to answer the question : figure 8-1: shows the curves F,C,and G denote the total cost,the total variable cost,and the total fixed cost of a firm.

-In Figure 8-1,which of the following distances represent the total cost of producing BT units of output?
A)SR
B)ST
C)RT
D)AB

Question

Use the following figure to answer the question : figure 8-1: shows the curves F,C,and G denote the total cost,the total variable cost,and the total fixed cost of a firm.

-In Figure 8-1,which of the following distances represent the total cost of producing BT units of output?
A)SR 
B)ST 
C)RT 
D)AB

Quizplus · Accepted Answer

The distance ST represents the total cost of producing BT units of output. This is because ST is the vertical distance between the total cost curve (F) and the y-axis (representing zero cost). Therefore, the height of the total cost curve at BT units of output is equal to the total cost of producing those units.

Use the Following Figure to Answer the Question : Figure