How does AC behave when AVC rises
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Answer:So, AC must fall. AVC starts rising after OQ1 output is being produced; its rise over a certain range is offset by a fall in AFC. That is why AC continues to fall over that range of output even if AVC rises. That is why AC's minimum point (point P) comes at a later range of output than AVC's minimum point.
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Answer:
So, AC must fall. AVC starts rising after OQ1 output is being produced; its rise over a certain range is offset by a fall in AFC. That is why AC continues to fall over that range of output even if AVC rises. That is why AC's minimum point (point P) comes at a later range of output than AVC's minimum point.
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