Economy, asked by anukdas28, 4 days ago

why is average total cost greater than average variable cost?

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Answered by aliaahilali123

0

Answer:

Average total cost is greater than avarage variable cost because ATC is the sum of average fixed cost and average variable,whileaverage variable cost(AVC) is a firm'svariable costs(labor, electricity, etc.) divided by the quantity (Q) ofoutputproduced. Variable costsare those costs which vary with output.

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