Question

Why there is difference between ATC and AVC with an increase in level of of output ? Can these two be equal at the same level of output ?

Answer 1

However, as AFC declines with the increase in the output level, the difference between ATC and AVC becomes smaller and smaller. An important point to note here is that although AFC keeps declining with increasing output level, but it can never become zero. ... Thus, ATC and AVC can never be equal at any level of output.