"The gap between Average Variable Cost and Average Fixed Cost falls when output rises". Defend or refute.

"The gap between Average Variable Cost and Average Fixed Cost falls wh

1.	"The gap between Average Variable Cost and Average Fixed Cost falls when output rises". Defend or refute.
Answer» Solution :The given statement is refuted. The gap between the TWO costs RISES with rise in output as average variable cost TENDS to rise after a particular level of output, whereas, average FIXED cost continuosly FALLS.