From the diagram, it is clear that at each output level average variable cost is less than the average total cost because the average total cost contain average fixed cost which is always positive.
The minimum point(output level) of both average total and average variable cost occurs at different points as shown in the diagram.
The minimum output level of average variable cost is occurs to the left of the minimum output level of the average total cost curve.
When the raising in the average variable cost is less than the falling in average fixed cost then the average total cost will decreases and the curve will sloped downward and when the average fixed cost increases compare to fall in average variable cost then the average total cost will increases and sloped upward i.e. AFC=TFC/X
Finally, as the output increases then the average variable cost and average total cost curve will get closer to each other but they will never intersect each other due to the average total cost because average total cost shows the relationship between average variable cost and average fixed cost while average fixed cost is always positive.
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