Economy, asked by nitinsharma8237, 10 months ago

Why AC curve is U-shaped in short run?​

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Answered by Anonymous
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Answer:

In the short-run period,the average cost(AC) curve is U -shaped due to the law of variable proportions. This states that as more and more units of a variable factor are applied to the same fixed factor,initially,the total product would increase but would eventually come down.

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