What is the relation between Average Variable Cost and Average Total Cost, if Total Fixed Cost is zero?
We know that
TC = TFC + TVC
Dividing both the side by'Q',we get
ATC = 0 AVC, here TFC = 0
Therefore, ATC = AVC
These cost curves will intersect each other.
Concept: Relationship Between Average Variable Cost and Average Total Cost and Marginal Cost
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