Which of the following formulas is not correct?
A) ATC = AVC + (TFC/Q)
B) TVC = TC/Q
C) TC = TFC + TVC
D) AFC = TFC/Q
E) TVC = AVC $\times$ Q

Question

Quizplus · Accepted Answer

B) is incorrect because TVC = TC/Q is not the correct formula. The correct formula for TVC (Total Variable Cost) should not involve dividing total cost (TC) by quantity (Q). Instead, TVC is a component of TC, as TC = TFC (Total Fixed Cost) + TVC. The formula given in B would actually describe average total cost (ATC) if TC was divided by Q, not TVC.

Which of the Following Formulas Is Not Correct? A) ATC ×\times×

Which of the Following Formulas Is Not Correct?
A) ATC $\times$