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प्रश्न
Why does the difference between ATC and AVC curves become smaller and smaller as output increases?
लघु उत्तरीय
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उत्तर
- As output increases, the difference between Average Total Cost (ATC) and Average Variable Cost (AVC) decreases due to the constant decline in Average Fixed Cost (AFC).
- ATC = AVC + AFC
- As output increases, the AFC (TFC ÷ Output) decreases. Because AFC is the only difference between ATC and AVC, the difference also narrows.
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