Option 1: (A) - (I), (B) - (II), (C) - (III), (D) - (IV) -> Let's verify each match:
(A) TVC (Total Variable Cost) = AVC × quantity - This is correct because when you multiply the average variable cost per unit by the total quantity produced, you get the total variable cost.
(B) SAC (Short-run Average Cost) = AVC + AFC - This is correct because short-run average cost is the sum of average variable cost and average fixed cost per unit.
(C) TC (Total Cost) = TVC + TFC - This is correct because total cost is always the sum of total variable costs and total fixed costs.
(D) LRMC (Long-run Marginal Cost) = (TC at q₁ units) – (TC at q₁ – ₁ units) - This is correct because marginal cost represents the change in total cost when one additional unit is produced, which is calculated by subtracting the total cost at (q₁ - 1) units from the total cost at q₁ units.
All matches align perfectly with standard microeconomic cost definitions. -> correct