The Vertical Distance Between the Total Variable Cost Curve and the Total

question 183

Multiple Choice

The vertical distance between the total variable cost curve and the total cost curve ________ as output increases; the vertical distance between the average variable cost curve and the average total cost curve ________ as output increases.

• A) decreases; remains the same
• B) is constant; becomes smaller
• C) increases; becomes smaller at first but then increases
• D) increases; remains the same

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Definitions:

Y-Intercept

The point where a line or curve crosses the y-axis of a graph, indicating the value of the dependent variable when the independent variable is zero.

Total Variation

The overall measure of variability or dispersion within a dataset.

Independent Variables

Variables in an experiment or statistical model that are manipulated or categorized to determine their effect on dependent variables.

Observations

Data collected during an experiment or research, representing values or occurrences recorded by the researcher.