Which cost concept is CORRECTLY defined?
A) MC = $\Delta$TC/$\Delta$FC
B) ATC = VC + FC
C) ATC = AVC + AFC
D) TC = AVC + AFC

Question

Quizplus · Accepted Answer

ATC (Average Total Cost) is correctly defined as the sum of AVC (Average Variable Cost) and AFC (Average Fixed Cost). Option A includes symbols and terms that are not commonly used in cost concepts, making it difficult to interpret. Option B incorrectly defines ATC as the sum of VC (Variable Cost) and FC (Fixed Cost) without taking into account the concept of average cost. Option D correctly defines TC (Total Cost) as the sum of AVC and AFC, but not the concept of ATC.

Which Cost Concept Is CORRECTLY Defined? A) MC = Δ\DeltaΔ TC Δ\DeltaΔ

Which Cost Concept Is CORRECTLY Defined?
A) MC = $\Delta$ TC $\Delta$