Question

distinguish between AFC and AVC diagrammatically


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Answer 1

Answer: Difference between AFC and AVC

Relationship between Average Cost, Average Variable Cost, Average Fixed Cost: ... The difference between AC and AVC falls as output increases but the difference of AC and AFC increase. As output increases, AC and AVC tend to be closer but their curves do not intersect each other because AFC always remains more than zero.

Explanation:

Answer 2

Answer: The AFC is the fixed cost per unit of output, and AVC is the variable cost per unit of output.