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Why is average total cost greater …

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Why is average total cost greater than average variable cost?

    • Posted by Payal Kotwani 5 years, 8 months ago

    CBSE > Class 12 > Economics
    • 1 answers

    Surya Prakash 7 years, 1 month ago

    AC = AFC + AVC. This implies that Average Variable Cost (AVC) is just a part of AC. Moreover we are considering short run production function in which there exist some fixed cost and hence average fixed cost. Therefore AVC even cannot be equal to AC depicting AC is always greater than AVC

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