Again, we can just take this step by step:

	0CBQ* = Total Cost
	0PAQ* = Total Revenue
	CPAB = Profit
	DCBE = Fixed Cost
	0DEQ* = Variable Cost

6. If the firm shown in Figure 2 is producing Q* units of output, its total variable costs are represented by:

1. the area equal to 0CBQ*. The area defined by the points 0CBQ* is total cost.
2. the area equal to 0DEQ*.
3. the area equal to CPAB. The area defined by the points CPAB is profit.
4. the area equal to DCBE. The area defined by the points DCBE turns out to be fixed costs. This must be true since it is also the difference between total variable costs and total cost.
5. the area equal to DPAE. The area defined by the points DPAE is profit + fixed cost.