Which one of the following statements is correct concerning the relationships among the firm’s cost functions?
A. ATC=AFC-AVC
B. AVC = AFC + ATC.
C. AFC = ATC + TVC.
D. AFC = ATC – AVC.
Answer:C
Which one of the following statements is correct concerning the relationships among the firm’s cost functions?
A. ATC=AFC-AVC B. AVC = AFC + ATC. C. AFC = ATC + TVC. D. AFC = ATC – AVC.