Which of the following statements is true?
A) TC = TFC − TVC
B) AVC = TC / Q
C) TFC = TC − TVC
D) MC equals the change in ATC divided by the change in Q.

Question

Quizplus · Accepted Answer

Option A represents the total cost equation, which is TC = TFC + TVC, so it is incorrect. 
Option B represents the average variable cost equation, which is AVC = TVC / Q, so it is also incorrect. 
Option D represents the marginal cost and average total cost relationship, but it is not an accurate equation. 
Option C represents the correct equation, where TFC (total fixed cost) is equal to total cost minus TVC (total variable cost). Therefore, option C is the only true statement.

Which of the Following Statements Is True