As output increases, the distance between average total cost and average variable cost increases.

Name: As output increases, the distance between average total cost and average variable cost increases.
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Question

Quizplus · Accepted Answer

As output increases, the distance between average total cost (ATC) and average variable cost (AVC) decreases because the average fixed cost (AFC), which is the difference between ATC and AVC, diminishes as output rises.

As Output Increases, the Distance Between Average Total Cost and Average