Question

02)
what is the relation between AVC and ATC when
AFC is zero?

Answer 1

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f TFC is zero, AFC also becomes zero. As a result, => TVC = TC since the difference between total cost and total variable cost is represented by TFC. If TVC = TC, then AVC = ATC (I.e.) AVC curve ATC curve coincide.

Answer 2

Average Total Cost (ATC) is the total cost per unit of output. Average Fixed Cost (AFC) is the total fixed cost per unit of output. Average Variable Cost (AVC) is the total variable cost per unit of output. ATC = TC / Q; AFC = TFC / Q; AVC = TVC / Q.