The Vertical Distance Between Total Cost Curve and Total Variable

question 58

Multiple Choice

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.

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Definitions:

Decimal Equivalent

The number obtained by dividing the numerator by the denominator in a fraction, expressed in decimal form.

Percent Equivalent

A way to express a number as a fraction of 100, commonly used to compare proportions.

Compound Interest

Interest calculated not only on the original amount of the deposit or loan but also on the interest that has accumulated over previous periods.

Compound Interest

Calculated interest on a deposit or loan that involves the initial principal plus the interest that has built up in past periods.