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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 defended. 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 never meet each other.
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Explore conceptually related problems

Answer the following question: (i) Why does AFC curve never touch the X-axis ? (ii) Why does TVC curve start from origin? (iii) Why AC, AVC and MC curves are U-shaped ? (iv) Why are the gap between TC curve and TVC curve remains constant with rise in output ? (v) Why does AC curve lie above the AVC curve ? (vi) Why does TC curve and TFC curve start from the same point above the origin?

Two parallel lines meet each other at some point.

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