Question

Explain why the short run average cost curve is u-shaped

Answer 1

esliye kyoki, short run me factor of production ko badhane par fixed n variable factor ka kaphi achha used hota h esliye initially cost decrease hota h means output teji se increase karti h. and short run jaisa ki eske name se hi clear h ki hum fixed factor ko to increase kar ni sakte. esliye last time me cost increase kar jati h n output decrease.