Economy, asked by rigjyotmatharu1, 5 months ago

explain why short run average cost curve u shaped​

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Answered by rubykushwaha07
2

Answer:

Costs in the short run

Short run cost curves tend to be U shaped because of diminishing returns. In the short run, capital is fixed. After a certain point, increasing extra workers leads to declining productivity. Therefore, as you employ more workers the marginal cost increases.

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Answered by ay446247417
1

Explanation:

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