What is relationship with AVC amd AC if TFC is 0
Dear student
generally this situation does not exist. but still, if we take the assumption when tfc is 0
then, relationship is defines as: as we know ; AC = (TFC + TVC) /OUTPUT ........(1)
AVC = TVC / OUTPUT ...............(2)
IF TFC = 0 , THEN PUT TFC= 0 IN EQUATION 1
AC = ( 0 + TVC) / OUTPUT
AC = TVC / OUTPUT
AC = AVC (FROM 2)
HENCE, AC and AVC will be equal, if TFC is 0
Regards
generally this situation does not exist. but still, if we take the assumption when tfc is 0
then, relationship is defines as: as we know ; AC = (TFC + TVC) /OUTPUT ........(1)
AVC = TVC / OUTPUT ...............(2)
IF TFC = 0 , THEN PUT TFC= 0 IN EQUATION 1
AC = ( 0 + TVC) / OUTPUT
AC = TVC / OUTPUT
AC = AVC (FROM 2)
HENCE, AC and AVC will be equal, if TFC is 0
Regards