All of the following cost curves are U-shaped except one.Which curve is not U-shaped?
A)The marginal cost curve
B)The average fixed cost curve
C)The average total cost curve
D)The average variable cost curve

Question

Quizplus · Accepted Answer

The average fixed cost curve is not U-shaped because it continuously decreases as output increases. This is because fixed costs are spread out over a larger amount of output, resulting in a lower average fixed cost. The other cost curves (marginal, average total, and average variable) are U-shaped because they initially decrease as output increases due to economies of scale, but eventually increase as output continues to increase due to diseconomies of scale.

All of the Following Cost Curves Are U-Shaped Except One