What is the sum of AVC and AFC equal to?
A) average total cost
B) economic profit
C) total variable cost
D) accounting profit

Question

Quizplus · Accepted Answer

The sum of average variable cost (AVC) and average fixed cost (AFC) is equal to average total cost (ATC). This is because ATC is the total cost (fixed and variable) divided by the quantity produced, whereas AFC and AVC are only the fixed cost and variable cost per unit respectively. Therefore, the correct answer is A - average total cost.

What Is the Sum of AVC and AFC Equal To