Question

Why is AC is curve u shaped??

Answer 1

The average cost curve is u-shaped because costs reduce as you increase the output, up to a certain optimal point. From there, the costs begin rising as you increase the output

Answer 2

Hello Mate,

The average cost curve is u-shaped because costs reduce as you increase the output, up to a certain optimal point. From there, the costs begin rising as you increase the output. ...

Average cost is defined as the total costs (fixed costs + variable costs) divided by total output.....

Hope this helps you