The difference between average total cost and average variable cost is – InterviewSolution

InterviewSolution

1.	The difference between average total cost and average variable cost is average fixed cost, which never becomes zero as total cost decreases with decrease with decrease in the level of output.
Answer» False. The difference between average total cost (ATC) and average variable cost (AVC) is average fixed cost (AFC) , which rises with decrease in output level . AFC=TFC/output. So Average fixed cost decreases as output increases and increases with decrease in output.

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