-Use the above figure. At an output equal to "Q" the total variable cost for the firm will be the area
A) OQAB.
B) OQEB.
C) OQFA.
D) OQDC.

Question

-Use the above figure. At an output equal to "Q" the total variable cost for the firm will be the area
A) OQAB. 
B) OQEB. 
C) OQFA. 
D) OQDC.

Quizplus · Accepted Answer

Total Variable Cost (TVC) is represented by the area under the Average Variable Cost (AVC) curve up to the level of output produced. In the given options, OQEB is the correct area that represents the total variable cost for the firm at output level Q, as it is the area under the AVC curve from the origin O to the output level Q, bounded by the AVC curve (EB).

-Use the Above Figure