if AC = Average Cost of production ,
TC = Total Cost of production
VC = Variable Cost of production
FC = Fixed Cost of production
Q = Quantity of goods produced
Then,
- AC = TC; TC = VC + FC
-
AC = \(\frac{(TC)}{Q}\): TC = VC + FC
- AC = TC; TC = (VC)(FC) Q
- AC = TC- FC: VC = TC- AC
- AC = TC ; TC = VC + AC Q
The correct answer is: B
Explanation
Average Cost (AC) is defined as the total cost divided by the quantity produced:
AC = \(\frac{TC}{Q}\)
Total Cost (TC) is the sum of Variable Cost (VC) and Fixed Cost (FC):
TC = VC + FC