Figure 7-4
-Average cost curves have the same basic shape as
A)total cost curves.
B)marginal cost curves.
C)total fixed cost curves.
D)average fixed cost curves.

Question

Figure 7-4 
-Average cost curves have the same basic shape as
A)total cost curves. 
B)marginal cost curves. 
C)total fixed cost curves. 
D)average fixed cost curves.

Quizplus · Accepted Answer

Marginal cost curves typically have a U-shape, reflecting increasing marginal costs after a certain point due to the law of diminishing returns. Average cost curves also generally have a U-shape, first decreasing due to economies of scale and then increasing due to diseconomies of scale.

Figure 7-4 -Average Cost Curves Have the Same Basic Shape as