"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» <html><body><p></p>Solution :The given statement is refuted. The gap between the <a href="https://interviewquestions.tuteehub.com/tag/two-714195" style="font-weight:bold;" target="_blank" title="Click to know more about TWO">TWO</a> costs <a href="https://interviewquestions.tuteehub.com/tag/rises-1189694" style="font-weight:bold;" target="_blank" title="Click to know more about RISES">RISES</a> with rise in output as average variable cost <a href="https://interviewquestions.tuteehub.com/tag/tends-7717049" style="font-weight:bold;" target="_blank" title="Click to know more about TENDS">TENDS</a> to rise after a particular level of output, whereas, average <a href="https://interviewquestions.tuteehub.com/tag/fixed-457597" style="font-weight:bold;" target="_blank" title="Click to know more about FIXED">FIXED</a> cost continuosly <a href="https://interviewquestions.tuteehub.com/tag/falls-983294" style="font-weight:bold;" target="_blank" title="Click to know more about FALLS">FALLS</a>.</body></html>