The vertical distance between the average total cost curve and the average variable cost curve equals:

Question

BlackTom AI · Accepted Answer

Average total cost (ATC) equals average variable cost (AVC) plus average fixed cost (AFC): ATC = AVC + AFC.

Relevant concepts:
- Total cost (TC) = Total fixed cost (TFC) + Total variable cost (TVC).
- Average cost per unit is cost divided by output Q: ATC = TC/Q, AVC = TVC/Q, AFC = TFC/Q.
- Marginal cost (MC) is the change in total cost from producing one more unit: MC = ΔTC/ΔQ, not an average.

Step-by-step algebraic reasoning:
1. Start with TC = TFC + TVC.
2. Divide both sides by Q (units produced): TC/Q = TFC/Q + TVC/Q.
3. Recognize averages: ATC = AFC + AVC.
4. Rearranging gives ATC − AVC = AFC.

Thus the vertical distance between the ATC curve and the AVC curve at any output level Q is exactly AFC (average fixed cost).

Numerical illustration (intermediate steps shown):
- Suppose TFC = 100, TVC = 200, Q = 10.
- AFC = TFC/Q = 100/10 = 10.
- AVC = TVC/Q = 200/10 = 20.
- ATC = TC/Q = (100+200)/10 = 30.
- ATC − AVC = 30 − 20 = 10 = AFC. This confirms the algebraic result.

Why the correct answer is correct:
AFC measures fixed cost per unit and is the component of ATC that does not vary with output; subtracting AVC from ATC removes the variable portion, leaving AFC.

Why other options are incorrect:
- Fixed cost (TFC) is a total amount, not the per-unit vertical distance between average curves; you must divide by Q to get the vertical distance.
- Marginal cost (MC) is a marginal concept (change in cost) and is unrelated to the vertical gap between ATC and AVC.
- The number of units produced is Q, a quantity, not a cost difference.

Conclusion: The vertical distance between ATC and AVC equals average fixed cost. The correct answer is "average fixed cost."

The vertical distance between the average total cost curve and the average variable cost curve equals:单项选择题

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