The vertical distance between the average _______cost curve and the average total cost curve becomes _________ as the quantity increases.

Question

Quizplus · Accepted Answer

The vertical distance between the average variable cost curve and the average total cost curve represents the average fixed cost at any given level of output. As quantity increases, average fixed costs decrease because fixed costs are spread over a larger number of units, making the distance between the AVC and ATC curves smaller.

The Vertical Distance Between the Average _______Cost Curve and the Average