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Do the ATC and AVC curves intersect? Giv...

Do the ATC and AVC curves intersect? Give reasons.

Text Solution

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AVC can never be equal to or greater than ATC as (ATC = AFC + AVC) or (ATC is the summation of AFC and AVC). The AVC and ATC curves come closer to each other as AFC goes on diminishing with each unit of output, but they can never touch or intersect each other as AFC never becomes zero.
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