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Figure: Short-Run Costs
-(Figure: Short-Run Costs) Look at the figure Short-Run Costs. The vertical difference between curve B and curve C at any quantity of output is _____ cost.
A) marginal
B) fixed
C) average fixed
D) average variable

Question

Use the following to answer questions:
Figure: Short-Run Costs 
-(Figure: Short-Run Costs) Look at the figure Short-Run Costs. The vertical difference between curve B and curve C at any quantity of output is _____ cost.
A) marginal 
B) fixed 
C) average fixed 
D) average variable

Quizplus · Accepted Answer

The vertical difference between the total cost curve (curve B) and the total variable cost curve (curve C) represents the total fixed cost. When considering average costs, this difference is reflected in the average fixed cost.

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