At Small Levels of Output the Gap Between the ATC

question 32

Short Answer

At small levels of output the gap between the ATC and the AVC curves is ______,and at larger levels of output the gap between the ATC and the AVC curves is ______.

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Definitions:

Substitutes

Goods or services that can replace each other in use or consumption, such that an increase in the price of one leads to an increase in demand for the other.

Marginal Revenue

Marginal revenue is the additional revenue that a firm gains from selling one more unit of a good or service.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded by consumers at those prices.

Price

The cost in money to purchase a particular good or service.