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"The gap between AC and AVC keeps on dec...

"The gap between AC and AVC keeps on decreasing with rise in output, but they never meet each other". Comment.

Text Solution

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The given statement is correct. The gap between AC and AVC keeps on decreasing because the difference between them is AFC, which falls with increase in output. However, AFC can never be zero. Therefore, AC and AVC can never meet each other.
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Knowledge Check

  • The realtionship between AC, AVC and MC is rightly shown by :

    A
    B
    C
    D

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