On a graph of production costs, the vertical distance between the fixed cost curve and the total cost curve at a specific quantity represents
A) variable cost
B) average variable cost
C) average total cost
D) average fixed cost
E) marginal cost

Question

Quizplus · Accepted Answer

The vertical distance between the fixed cost curve and the total cost curve at a specific quantity represents the variable cost, as total cost is the sum of fixed cost and variable cost.

On a Graph of Production Costs, the Vertical Distance Between