Q136
Which of the following cost curves is never U-shaped?
A.
Average cost curve
B.
Marginal cost curve
C.
Average variable cost curve
D.
Average fixed cost curve
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Average fixed cost curve is never U-shaped. The average fixed costs AFC curve is downward sloping because fixed costs are distributed over a larger volume when the quantity produced increases.