Which of the following statements concerning the long-run average cost curve of economic theory is true?
A) It is L-shaped
B) It is $\cap$-shaped
C) It is $\cup$-shaped
D) It is$ \land$-shaped
E) It is M-shaped

Question

Quizplus · Accepted Answer

The long-run average cost curve is typically $\cup$-shaped due to economies and diseconomies of scale. Initially, costs decrease with increased production (economies of scale), then increase after a certain point (diseconomies of scale).

Which of the Following Statements Concerning the Long-Run Average Cost ∩\cap∩

Which of the Following Statements Concerning the Long-Run Average Cost $\cap$