when average cost is maximum
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Answer:
The Average Variable Cost curve is never parallel to or as high as the Average Cost curve due to the existence of positive Average Fixed Costs at all levels of production; but the Average Variable Cost curve asymptotically approaches the Average Cost curve from below.
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Answer:
Average cost is maximum when the marginal cost is greater than the average cost.
Average cost is equal to total cost divided by the total no. of units produced.
Explanation:
Average cost is the point deciding the profit or loss for the business entity.
Average cost is neutral, then ,marginal cost is equal to average cost.
When average cost is falling, marginal cost will fall
When average cost in rising , marginal cost is greater than average cost.
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