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Question

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

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Solution

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.
1279921_956792_ans_57fc735d15da4befb1ea6bacd5623bb2.jpg

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