Question

explain why short run average cost curve u shaped​

Answer 1

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.

Explanation:

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Answer 2

Answer:

explain with two reason why short run average curve is u shape