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 fixed costs remain constant regardless of the level of output. As output increases, the fixed cost is spread over more units, which causes the average fixed cost to decrease continuously. Therefore, the average fixed cost curve is downward sloping and not U-shaped.

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