Question

The distance between $AVC$ and $AFC$ curves tends to reduce as output increases. Is it true?

Answer 1

No, it is not true. Initially as output increases the distance between $AVC$ and $AFC$ curves may tend to reduce but once the two curves cross each other as in diagram, the difference between the two tends to increase. Because, while $AVC$ tends to rise after a certain level of output, $AFC$ continuously falls.