Question on: WAEC Economics - 2015
which of the following curves is not U shaped
A
marginal cost curve
B
average fixed cost curve
C
average total cost curve
D
average variable cost
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Correct Option: B
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.
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