Which of the following cost curves is not generally U-shaped?
A) AFC.
B) AVC.
C) ATC.
D) MC.

Question

Quizplus · Accepted Answer

The average fixed cost (AFC) curve is not generally U-shaped. This is because fixed costs do not change with changes in output in the short run, so the AFC curve decreases as output increases, eventually becoming very small as output increases. However, the AFC curve will never rise again because fixed costs will not change with further increases in output. The other three cost curves -- average variable cost (AVC), average total cost (ATC), and marginal cost (MC) -- are generally U-shaped.

Which of the Following Cost Curves Is Not Generally U-Shaped