The AVC curve is at its minimum when the average product is at its maximum. This is because AVC = Total Variable Cost / Quantity, and Average Product = Quantity / Variable Input. When average product is maximized, the efficiency of the variable input is highest, leading to the lowest cost per unit of output for the variable factors.
When average production is at maximum, average variable cost will be
Asked in Agri. Officer 2020 · Topic: Nature of Indian Economy (Developing Economy Characteristics)
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