Ask Question
13 March, 06:14

Why is average cost and short run marginal cost always u-shaped

+2
Answers (1)
  1. 13 March, 07:27
    0
    The Marginal Cost curve is U shaped because at the beginning when a firm increases its output, average costs, as well as variable costs, start to increase at a diminishing rate. At this stage, due to economies of scale, Marginal Cost falls till it becomes minimum. Then as output rises, the marginal cost increases.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Why is average cost and short run marginal cost always u-shaped ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers