Asked by Elisa Davis on Jul 03, 2024
Verified
The vertical distance between the TC curve and TVC curve is equal to
A) ATC.
B) AVC.
C) TFC.
D) MC.
TC Curve
A graphical representation showing the total cost of producing different quantities of a good or service.
TVC Curve
A graphical representation showing the relationship between a firm's total variable costs and its output level.
TFC
stands for Total Fixed Costs, which are the costs that do not vary with the level of production or sales, such as rent or salaries.
- Acquire knowledge on how average total costs (ATC), average variable costs (AVC), and total costs (TC) are interrelated.
Verified Answer
ZK
Zybrea KnightJul 09, 2024
Final Answer :
C
Explanation :
The vertical distance between the Total Cost (TC) curve and the Total Variable Cost (TVC) curve is equal to Total Fixed Cost (TFC), because TC = TVC + TFC.
Learning Objectives
- Acquire knowledge on how average total costs (ATC), average variable costs (AVC), and total costs (TC) are interrelated.