Intermediate goods and services are inputs used in the production of final goods and services. The vertical difference between curve I and curve II on a cost curve graph represents average fixed cost.

1. Intermediate goods and services
Select one:
a. are not included in calculating GDP using the value-added method.
b. are goods and services produced in the last year but sold in this year.
c. are goods and services used as an input for the production of final goods and services.
d. are goods and services purchased for ultimate consumption.
e. are goods and services produced this year but not yet sold.
In Figure 21-3, the vertical difference between curve I and curve II is
Select one:
a. average-fixed-cost.
b. average-variable-cost.
c. minimum total cos.
d. total variable cost.
e. marginal cost.
Intermediate goods and services Select one: a. are not included in calculating GDP using the
value-added method. b. are goods and services produced in the last year but sold in this year. c.
are goods and services used as an input for the production of final goods and services. d. are
goods and services purchased for ultimate consumption. e. are goods and services produced this
year but not yet sold. In Figure 21-3, the vertical difference between curve I and curve II is
Select one: a. average-fixed-cost. b. average-variable-cost. c. minimum total cos. d. total variable
cost. e. marginal cost.

2. Solution
1) Intermediate goods and services: are goods and services used as an input for the production of
final goods and services.
Hence option C is the correct answer.
2) The vertical difference between curve I and curve II is: Average fixed cost.
Hence option A is the correct answer.
The curve I is the ATC curve and the curve II is the AVC curve and the gap between them is the
AVC.
I hope my solution solves your query.
Regards.