Question

why is AVC an U-shaped curve​

Answer 1

Answer:

AVC is 'U' shaped because of the principle of variable Proportions, which explains the three phases of the curve: Increasing returns to the variable factors, which cause average costs to fall, followed by: ... Diminishing returns, which cause costs to rise.

Answer 2

AVC is 'U' shaped because of the principle of variable Proportions, which explains the three phases of the curve: Increasing returns to the variable factors, which cause average costs to fall, followed by: ... Diminishing returns, which cause costs to rise.