-In Figure 3.2, what is the variable cost to the producer?
A)0PCQ*
B)0BCQ*
C)P*AC
D)BP*C

Question

-In Figure 3.2, what is the variable cost to the producer? 
A)0PCQ* 
B)0BCQ* 
C)P*AC 
D)BP*C

Quizplus · Accepted Answer

Variable costs change with the level of output, and in the context of a graph typically associated with economic models, the area under the average variable cost curve up to the quantity produced (Q*) represents the total variable cost. Therefore, the area 0BCQ* corresponds to the total variable costs to the producer.