WAEC - Economics (2015 - No. 20)
which of the following curves is not U shaped
marginal cost curve
average fixed cost curve
average total cost curve
average variable cost
Erläuterung
The average fixed costs AFC curve is downward slopingbecause fixed costs are distributed over a larger volume when the quantity produced increases. AFC is equal to the vertical difference between ATC and AVC. Variable returns to scale explains why the other cost curves are U-shaped.