At any given volume,average fixed costs must equal average variable costs.

Question

Quizplus · Accepted Answer

Average fixed costs are the fixed costs per unit of output and decrease as the quantity produced increases. On the other hand, average variable costs are the variable costs per unit of output and may increase or decrease depending on the level of output. Therefore, at any given volume, average fixed costs may not necessarily equal average variable costs.

At Any Given Volume,average Fixed Costs Must Equal Average Variable