The difference between the average total cost and average fixed cost shows the ________.

normal profits

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implicit costs

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average variable cost

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opportunity costs

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Solution

The correct option is C average variable cost
$A T C = A F C + A V C$ .
Hence, the difference between the ATC and AFC shows the AVC.

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The difference between the average total cost and average fixed cost shows the ________.

The correct option is C average variable costATC=AFC+AVC.Hence, the difference between the ATC and AFC shows the AVC.

The correct option is C average variable cost
$A T C = A F C + A V C$ .
Hence, the difference between the ATC and AFC shows the AVC.