Question

With increase in output, the difference between AC curve and AVC curve ______.

विकल्प

• increases

• decreases

• remains constant

• none of these

Answer 1

With increase in output, the difference between AC curve and AVC curve decreases.

Explanation:

The difference between average cost and average variable cost is average fixed cost. AFC falls as output increases, so the gap between AC and AVC decreases.