Answer to Question #110493 in Microeconomics for Eshal Imdad

Question

explain why the vertical distance between the total cost and total Variable cost curves is constant.

Answer 1

Total variable cost (TVC) increases as output increases. The vertical distance between the total cost curve and the total variable cost curve is total fixed cost, as illustrated by the two arrows. A firm's marginal cost is the change in total cost that results from a one-unit increase in total product.