Explain Why the ATC and AVC Curves Get Closer and Closer

question 21

Essay

Explain why the ATC and AVC curves get closer and closer together as output increases.

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Definitions:

Rate of Return

The enhancement or reduction in worth of an investment across a specific duration, measured as a proportion of the investment's original cost.

First Dividends

The initial distribution of earnings paid to shareholders by a corporation that has just begun paying dividends.

Dividend Next Year

Dividend next year refers to the projected or announced dividend payments that a company is expected to distribute to its shareholders in the upcoming fiscal year.