ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following curves is not U-shaped?
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Marginal Cost (MC)
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Average Fixed Cost (AFC)
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Average Variable Cost (AVC)
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Average Cost (AC)
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Explanation:
Detailed explanation-1: -The Average fixed cost curve represent the relationship between average fixed cost and quantity produced. It is relatively high when the quantity of output is small and declines as the quantity produced increases. AFC curve is negatively sloped and therefore can not be U shaped.
Detailed explanation-2: -Shape of the AFC curve is a rectangular hyperbola.
Detailed explanation-3: -All the cost curves are U-shaped except the average fixed cost curve. Fixed cost is constant, thus, with the every increase in output average fixed cost decreases.
Detailed explanation-4: -The Marginal Cost Curve is U-Shaped.
There is 1 question to complete.