Figure 7-6
-Refer to Figure 7-6.Suppose the firm produces 4000 units.What does the shaded area labelled A represent?
A) Total variable cost
B) Profit
C) Total fixed cost
D) Total revenue

Question

Figure 7-6 
-Refer to Figure 7-6.Suppose the firm produces 4000 units.What does the shaded area labelled A represent?
A) Total variable cost 
B) Profit 
C) Total fixed cost 
D) Total revenue

Quizplus · Accepted Answer

The shaded area labelled A represents the total fixed cost, which is the cost that does not change with the level of output produced.

Figure 7-6 -Refer to Figure 7-6.Suppose the Firm Produces 4000 Units.What Does