answersLogoWhite

0

As output expands, fixed costs are spread out over a larger quantity of output, causing average fixed cost (AFC) to decrease. Since average total cost (ATC) is the sum of average variable cost (AVC) and AFC, and AFC is decreasing, ATC will also decrease. However, AVC tends to decrease at a slower rate than AFC, so the gap between AVC and ATC narrows as output expands.

User Avatar

AnswerBot

1y ago

What else can I help you with?

Related Questions

What production function explain relationship between?

output and exports


What person intends or or plans to do?

Explain input and output devices


Price and output determination under oligopoly?

Explain how price and output decision are taken under conditions of oligopoly.


Can the hard disk of today used as input or output explain?

Since you can both read from (input) and write to (output) a hard disk, it is considered both an input and an output device.


Is terminal an input and output device?

Yes and no. It's...hard to explain. The monitor on the terminal is the Output device and the keyboard on the terminal is the input device.


What primary hardware components work together to deliver color output to the screen?

what prmary hardware components work together to deliver color output to the screen?


How does moving the output distance closer to the fulcrum affect the input force?

Assuming the input side of the lever remains the same length, the reduction in distance you specify will reduce the input effort needed. If the input and output lengths from the fulcrum are respectively L and l (small 'L') long, and the input and output forces are respectivelyf and F, then Lf = lF So to maintain that algebraicequality, reducing l will increase F for the same values of L and f.


What is the best position to place inlet and outlet pipes for fluval 305 filter?

i would place the inlet closer to the bottom and the output closer to the top on the opposite side of the aquarium


Explain when step input is given to high pass RC circuit what will be output?

exponential


Is a Terminal an input or output device?

Yes and no. It's...hard to explain. The monitor on the terminal is the Output device and the keyboard on the terminal is the input device.


What happens to the difference between ATC and AVC as a firm's output expands?

The difference narrows. ATC is the sum of AVC and AFC.. Since AFC declines steadily as output rises, the difference between ATC and AVC must narrow steadily.


Where are the output and input speed sensors on a 1990 Plymouth Grand Voyager?

The input and output speed sensors are the two wire sensors on the front of the transmission case. The input is closer to the engine.