The typical average variable cost curve:
A) is U-shaped.
B) slopes down and to the right.
C) slopes up and to the right.
D) rises and then falls sharply.

Name: The typical average variable cost curve: A) is U-shaped. B) slopes down and to the right. C) slopes up and to the right. D) rises and then falls sharply.
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Question

Quizplus · Accepted Answer

The average variable cost curve is typically U-shaped due to initially decreasing costs with increased production, followed by increasing costs as diminishing returns set in.

The Typical Average Variable Cost Curve