The difference between average total cost and average variable cost isaveragefixed cost, which never becomes zeroas total cost decreases with decrease with decrease in the level of output.

The difference between average total cost and average variable cost is

1.	The difference between average total cost and average variable cost isaveragefixed cost, which never becomes zeroas total cost decreases with decrease with decrease in the level of output.
Answer» <html><body><p></p>Solution :False. <a href="https://interviewquestions.tuteehub.com/tag/thedifference-706369" style="font-weight:bold;" target="_blank" title="Click to know more about THEDIFFERENCE">THEDIFFERENCE</a> between <a href="https://interviewquestions.tuteehub.com/tag/average-13416" style="font-weight:bold;" target="_blank" title="Click to know more about AVERAGE">AVERAGE</a> <a href="https://interviewquestions.tuteehub.com/tag/total-711110" style="font-weight:bold;" target="_blank" title="Click to know more about TOTAL">TOTAL</a> cost (ATC) and average variable cost (AVC) is average fixed cost (AFC) , which rises with <a href="https://interviewquestions.tuteehub.com/tag/decrease-946104" style="font-weight:bold;" target="_blank" title="Click to know more about DECREASE">DECREASE</a> in output level . AFC=TFC/output. So Average fixed cost decreases as output <a href="https://interviewquestions.tuteehub.com/tag/increases-1040626" style="font-weight:bold;" target="_blank" title="Click to know more about INCREASES">INCREASES</a> and increases with decrease in output.</body></html>