Which of the following formula is incorrect?

SAC = AVC - AFC

The correct answer is Option 2: SAC = AVC - AFC

Option 2 is incorrect- It should be SAC = AVC + AFC

Short run average cost (SAC)

Average variable cost (AVC)

Average fixed cost (AFC)

SAC stands for Short-Run Average Cost. It's calculated by dividing the Total Cost (TC) by the Output (Q). So, SAC = TC / Q (Option 1 is correct).

SAC = AVC + AFC or AVC = SAC - AFC (Option 3 is also correct).

Option 2 is incorrect.