Question #75798
The vertical distance between the total cost and the total variable cost curves:
a) Decreases as output increases.
b) Increases as output increases.
c) Is equal to average fixed cost.
d) Is equal to total fixed cost.
a) Decreases as output increases.
b) Increases as output increases.
c) Is equal to average fixed cost.
d) Is equal to total fixed cost.
Expert's answer
The vertical distance between the total cost and the total variable cost curves is equal to total fixed cost.
This is because ATC = AFC + AVC. Therefore, AFC = ATC – AVC.
This is because ATC = AFC + AVC. Therefore, AFC = ATC – AVC.
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