Use the following to answer question(s): Short-Run Costs

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

Question

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

Quizplus · Accepted Answer

The vertical difference between curve B and curve C represents the variable cost per unit of output. Therefore, the difference between curve C and the total cost curve (which is curve A) represents the average fixed cost per unit of output. The vertical difference between curve B and curve C does not represent marginal cost or fixed cost because those would require looking at changes in output or changes in total cost, respectively.

Use the Following to Answer Question(s): Short-Run Costs