CBSE Class 12-commerce Answered
Both AC snd Marginal Cost are U-shaped .......then what is the difference b/w this shape factor
of the two ......
Asked by Eng.surinder.singh | 18 Feb, 2018, 05:06: PM
Expert Answer
Yes both Ac and MC curves are U shaped. The marginal cost curve is concave with increasing returns, then it change to linear and smooth shape in constant returns and change to convex when marginal cost show increasing returns. On the other hand, the average cost curve initially fall due to decreasing fixed costs then rise due to increasing of average variable costs.
Answered by Tharageswari S | 18 Feb, 2018, 07:19: PM
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