Why does the atc curve always lie above the avc curve why


a. Why does the ATC curve always lie above the AVC curve? Why do the two curves move closer together, but never seem to meet each other?

b. What does the law of diminishing returns have to do with the shape of the AVC and ATC curves? Explain why those curves are U-shaped. 

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Business Economics: Why does the atc curve always lie above the avc curve why
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