Average Fixed Cost is the
A)horizontal distance (at any particular cost level)between ATC and AVC
B)vertical distance (at any particular quantity)between ATC and AVC
C)vertical distance (at any particular quantity)between ATC and the horizontal axis
D)vertical distance (at any particular quantity)between AVC and the horizontal axis
E)horizontal distance (at any particular cost level)between ATC and the vertical axis

Question

Quizplus · Accepted Answer

Average Fixed Cost (AFC) is the vertical distance between Average Total Cost (ATC) and Average Variable Cost (AVC) at any particular quantity, as AFC is the difference between ATC and AVC.

Average Fixed Cost Is the