Final answer:
The statement is true; average cost (AVC plus AFC) varies with output, decreasing at low levels and increasing at high levels, meaning average costs will not be uniform across all output levels.
Step-by-step explanation:
True, short-run average cost consists of average variable cost (AVC) plus average fixed cost (AFC). As output increases, AFC diminishes because fixed costs are spread over a larger number of units.
The AVC tends to decrease with low levels of output due to the spreading of variable costs over an increasing number of units, leading to potential economies of scale. However, at higher levels of output, the AVC increases due to the law of diminishing returns, where additional units of output require more variable inputs to produce.
The average total cost (ATC) curve, which is the sum of AVC and AFC, is typically U-shaped, reflecting decreasing costs at low levels of production and increasing costs at high levels of production.
Meaning, while there could be points where different quantities have the same average cost, it is not the case across all output levels.