JAMB Economics 1984 Question 12

Let TC = total costs, TVC = total variable costs, TFC = total fixed costs, ATC = average total costs, AVC = average variable costs, AFC = average fixed costs, Q = output. Which of the following is NOT true?

1. A.TC = TFC + TVC
2. B.ATC = AVC + AFC
3. C.AFC = TFC/Q
4. D.TVC = AVC/Q
5. E.AVC = TVC/Q