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Production and cost — Economics STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceEconomicsProduction and cost1 Mark
Question
Giving reasons, state whether the following Its are true or false.
The difference between average total cost and average variable cost decreases with the decrease in the level of output.
✓

Answer

False:
Explanation:
It is so because the difference between ATC and AVC is AFC and AFC must decrease with the increase in production.(or must increase as output decreases).

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