Relationship bet AC AFC AVC
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Posted by Anesh Khemani 7 years ago
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Gaurav Seth 7 years ago
1. ac and avc are 'U' shaped due to law of variable proportion. AFC is a rectangular hyperbola curve.
2.As output increases the gap between AC and AVC diminishes because their gap is AFC which is continously falling.
3.However,it is to be noted that AC and AVC never intersect eachother because their gap is AFC which can be never zero.
4.As output increases the gap between AC and AFC increases beacuse AFC is a rectrngular hyperbola where as AC is 'U' shaped.
2Thank You