Question

The vertical distance between the avc and atc curves is equal to

a. marginal cost.
b. average fixed cost.
c. accounting profit.
d. economic profit.
e. none of the above

Answer 1

The appropriate response is the average fixed cost. It is the fixed costs of generation (FC) isolated by the quantity (Q) of yield created. Settled expenses are those costs that must be acquired in settled amount paying little heed to the level of yield delivered.