The average variable cost curve and the average total cost get closer to each other as output increases. What explains this?

The average
variable cost (AVC) is calculated by dividing the firms variable costs by the output or quantity
that has been produced. The average total cost, on the other hand, is calculated by dividing the
total cost by the output or quantity of goods that have been produced.

It is
important to note that the total cost of a firm is a combination of both variable costs (labor
and electricity) and fixed costs (buildings and equipment). Variable costs increase
proportionally to the number of items produced, while the fixed costs are spread among the items
as production increases. 

At the start of production, fixed costs are higher
than the variable costs but as production increases the variable costs increase. Thus, as
quantity increases, both the variable costs and, consequently, the total costs will continue to
increase. The situation forces the ATC and AVC curves to move closer to each other as the
quantity continues to increase.

href="https://www.economics.utoronto.ca/jfloyd/modules/tfcm.html">https://www.economics.utoronto.ca/jfloyd/modules/tfcm.html
href="https://www.economicsonline.co.uk/Business_economics/Costs.html">https://www.economicsonline.co.uk/Business_economics/Cost...