Question 35
MediumOriginal questionRead the two statements and choose the correct option.
I. AC is always greater than AVC in the short run.
II. AC and AVC meet at high levels of output.
Show the answer and explanation
CorrectNot quiteAnswer A
Correct answer: A
Explanation
I is true: AC = AVC + AFC, and AFC is always positive.
II is false: AFC never reaches zero, so the curves come closer but never meet.
- Concept
- AC and AVC
- Typical timeTypical
- 70 s
- Your timeYours
- —
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