The vertical distance between total cost curve and total variable cost curve is equal to
A) average fixed cost.
B) total fixed cost.
C) average variable cost.
D) average total cost.
E) marginal cost.

Question

Quizplus · Accepted Answer

The vertical distance between the total cost curve and the total variable cost curve represents the total fixed cost. This is because total cost equals total variable cost plus total fixed cost. Therefore, the difference between the two curves is equal to the total fixed cost.

The Vertical Distance Between Total Cost Curve and Total Variable