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Tracy Guastavino
on Oct 14, 2024

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Average fixed cost curves will be U-shaped if the marginal cost curve is upward sloping.

Average Fixed Cost Curves

A graph representing the fixed costs of production (costs that do not change with the level of output) spread over varying levels of output, typically decreasing as output increases.

Marginal Cost Curve

A graphical representation showing the change in total cost that arises from producing one additional unit of a good or service.

U-Shaped

A descriptive term for a scenario where performance or conditions decline, then bottom out, and finally improve, thus resembling the letter "U".

  • Fathom the relationship between marginal, average, and total costs across a range of production scenarios.
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Chika MaudiaOct 21, 2024
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