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प्रश्न
What is the relation between Average Variable Cost and Average Total Cost, if Total Fixed Cost is zero?
उत्तर
We know that
TC = TFC + TVC
Dividing both the side by'Q',we get
`(TC)/Q=(TFC)/Q+(TVC)/Q`
ATC = 0 AVC, here TFC = 0
Therefore, ATC = AVC
These cost curves will intersect each other.
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संबंधित प्रश्न
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| Output | 0 | 1 | 2 | 3 | 4 |
| Total cost | 100 | 250 | 370 | 550 | 740 |
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