Question

Use the figure below to answer the following question. Cost (dollars) 150-11 0 5 10 15 20 Output teapots per day) Figure 6 30) Refer to Figure 6, which illustrates short-run average and marginal cost curves. Which one of the following statements is false? A) The vertical gap between curves B and C is equal to average variable cost. B) Line B comes closer to line C as output increases because of a decrease in average fixed cost. C) Curve D is the marginal cost curve. D) Average fixed cost decreases with output. E) The vertical gap between curves B and C is equal to average fixed cost.