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Explain relation between AC , AVC …

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Explain relation between AC , AVC ,AFC with diagram

Posted by M Ahuja 6 years, 6 months ago

CBSE > Class 12 > Economics

2 answers

Himanshu Gupta 6 years, 6 months ago

Ac=Avc+Afc Ac&AFC can never be zero even at the zero level of output because there is fixed cost at every level of output. Avc is zero at zero level of output Afc can never ever touch both the X and Y axis becouse afc can never be zero and fixed cost also can never be zero. Ac curve always lies above the afc and avc curve.

3Thank You

Deepak Kumar 6 years, 6 months ago

Ac =AVC+AFC .......AC IS ALWAYS MORE THAN AVC AND DIFFERENCE IS AFC........AT ZERO LV. OF PRODUCTION AC = AFC BECAUSE AVC = 0.

3Thank You

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