-In the above figure, the relationship between costs indicates that the distance between curves
A) A and B is equal to the variable cost.
B) B and C is equal to the fixed cost.
C) B and C is equal to the average total cost.
D) A and B is equal to the fixed cost.

Question

-In the above figure, the relationship between costs indicates that the distance between curves
A) A and B is equal to the variable cost. 
B) B and C is equal to the fixed cost. 
C) B and C is equal to the average total cost. 
D) A and B is equal to the fixed cost.

Quizplus · Accepted Answer

The distance between curves A (Total Cost) and B (Variable Cost) represents the fixed cost, as fixed costs do not change with the level of output and are thus the difference between total costs and variable costs at any level of production.

-In the Above Figure, the Relationship Between Costs Indicates That