A. average variable cost equals average total cost minus average fixed cost B. average fixed cost equals average variable cost minus average total cost C. average total cost equals average variable cost plus average fixed cost D. average total cost minus average variable cost equal average fixed cost
Correct Answer: B
Explanation
\(\mathrm{AC}=\mathrm{AFC}+\mathrm{AVC}\) Thus \(\mathrm{AFC}=\mathrm{AC}-\mathrm{AVC}(\) not \(\mathrm{AVC}-\mathrm{AC})\)
