ATC and AVC tend to intersect at some level of output.

True

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False

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Solution

The correct option is B False
The statement is false. They do not intersect because ATC is the sum of AFC and AVC. Since AFC can never be zero, AVC can never be equal or greater than ATC. Thus, ATC always remains above AVC.

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Similar questions

Do ATC and AVC curves intersect? Explain.

A V C

A F C

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