Exhibit 7-8

-In Exhibit 7-8,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 7-8
 
-In Exhibit 7-8,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 lines B and C represents the average fixed cost because it is the only cost that remains constant regardless of the level of output.

Exhibit 7-8 -In Exhibit 7-8,the Vertical Distance Between Lines B and C