Economy, asked by utkarshpal9090, 2 months ago

why is average product curve u shaped​

Answers

Answered by InstaPrince
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