Refer to Figure 8.1, which shows a family of average cost curves. The average fixed cost at a given level of output is represented by:

A. the vertical distance between Curve 1 and Curve 2 at a given level of output.
B. the vertical distance between Curve 1 and Curve 3 at a given level of output.
C. the vertical sum of Curve 1 and Curve 2 at a given level of output.
D. the vertical sum of Curve 1 and Curve 3 at a given level of output.


Answer: A

Economics

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