Why does the difference between Average Total Cost and Average Variable Cost decrease with an increase in the level of output? Can these two be equal at some level of output? Explain.
the difference between ATC and AVC is equal to Average fixed cost which decreases with an increase in output because of constant Total fixed cost . So average total cost and average variable cost cannot be equal at any time as TFC is constant and AFC is average of TFC . so average can never be zero