which of the following curves is not U shaped
- marginal cost curve
-
average fixed cost curve
- average total cost curve
- average variable cost
The correct answer is: B
Explanation
The average fixed costs AFC curve is downward slopingbecause fixed costs are distributed over a larger volume when the quantity produced increases. AFC is equal to the vertical difference between ATC and AVC. Variable returns to scale explains why the other cost curves are U-shaped.