why is average product curve u shaped
Answers
Answered by
2
Answer:
Here's Your Answer
Explanation:
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: Constant returns, followed by: Diminishing returns, which cause costs to rise.
Similar questions
Social Sciences,
1 month ago
English,
1 month ago
Science,
2 months ago
Social Sciences,
2 months ago
Math,
8 months ago
Math,
8 months ago
Social Sciences,
8 months ago