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Why does the difference between ATCand AVCdecrease with increase in level of output Explain.

Answer» <html><body><p></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/given-473447" style="font-weight:bold;" target="_blank" title="Click to know more about GIVEN">GIVEN</a> thatATC =AFC +<a href="https://interviewquestions.tuteehub.com/tag/avc-364692" style="font-weight:bold;" target="_blank" title="Click to know more about AVC">AVC</a> <br/> `:.ATC -AVC =AFC` <br/> `AFC =(TFC)/("<a href="https://interviewquestions.tuteehub.com/tag/output-1142821" style="font-weight:bold;" target="_blank" title="Click to know more about OUTPUT">OUTPUT</a> ")` <br/> `by definitionTFC is constant. Thereforeas output is increased AFC falls<br/> <a href="https://interviewquestions.tuteehub.com/tag/since-644476" style="font-weight:bold;" target="_blank" title="Click to know more about SINCE">SINCE</a> AFC =ATC -AVC, thedifference between <br/> ATC and AVC fallsas output is increased.</body></html>


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