Economy, asked by avantikatyagi2481999, 5 months ago

why average and marginal cost curve have same shape?

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Answered by Anonymous
5

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Because the short run marginal cost curve is sloped like this, mathematically the average cost curve will be U shaped. Initially, average costs fall. But, when marginal cost is above the average cost, then average cost starts to rise. Marginal cost always passes through the lowest point of the average cost curve.

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