Giving reason, explain whether true or false : the difference between average cost and average variable cost is always constant.

Giving reason, explain whether true or false : the difference between

1.	Giving reason, explain whether true or false : the difference between average cost and average variable cost is always constant.
Answer» SOLUTION :FALSE, because the difference between average cost and average variable cost is average fixed cost which can NEVER be constant.Since AFC tends to decline with increase in output,the difference between AC and AVC must reduce as output INCREASES.