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victus00 [196]
3 years ago
12

At any given volume, average fixed costs must equal average variable costs True or false?

Business
1 answer:
Elanso [62]3 years ago
3 0
False. Average fixed costs are totally different from average variable costs. They can only be equal if by chance the fixed costs are equal to variable costs for a specific level of production
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Answer:

The average total cost of production will decrease.

Explanation:

Average total costs consists of total fixed cost plus the total variable cost divided by the number of output/unit produced.

Now, since the fixed cost is fixed and doesn't change due to the change in output, the fixed cost per unit or the average fixed cost will decrease when the output will increase. Hence, resulting in the decrease of the average total cost of production.

I hope I cleared your concept above.

Best of luck and Good luck.

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4 years ago
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4 years ago
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