Average total cost is always ____________ average variable cost,but as output rises,the difference between them ___________.

Question

Quizplus · Accepted Answer

Average total cost includes both fixed and variable costs, while average variable cost only includes variable costs. As output rises, the fixed costs get spread out over a larger number of units, causing the difference between average total cost and average variable cost to narrow. Therefore, option C is the correct choice.

Average Total Cost Is Always ____________ Average Variable Cost,but as Output