Why does the difference between ATCand AVCdecrease with increase in le

1.	Why does the difference between ATCand AVCdecrease with increase in level of output Explain.
Answer» Solution :GIVEN thatATC =AFC +AVC `:.ATC -AVC =AFC` `AFC =(TFC)/("OUTPUT ")` `by definitionTFC is constant. Thereforeas output is increased AFC falls SINCE AFC =ATC -AVC, thedifference between ATC and AVC fallsas output is increased.

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