Refer to Figure 21.3.The vertical difference between the total cost curve and the total fixed cost curve represents
A)Total variable costs.
B)Total marginal costs.
C)Average fixed costs.
D)Average variable costs.

Question

Refer to Figure 21.3.The vertical difference between the total cost curve and the total fixed cost curve represents
A)Total variable costs. 
B)Total marginal costs. 
C)Average fixed costs. 
D)Average variable costs.

Quizplus · Accepted Answer

The vertical difference between the total cost curve and the total fixed cost curve represents the amount of total variable costs. Total variable costs are costs that vary with the level of production, such as the cost of materials and labor. Therefore, choice A is the correct answer.