Which of the following cost curves is never U shaped ........

Economics- Phase (I & II) Business Cycles

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Which of the following cost curves is never U-shaped?

Average cost curve

Marginal cost curve

Average variable cost curve

Average fixed cost curve

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Explanation:

The average fixed cost (AFC) curve is a rectangular hyperbola. The area under the curve is constant because TFC is constant at all levels of output.? Average fixed cost curve is never U-shaped. The average fixed costs AFC curve is downward sloping because fixed costs are distributed over a larger volume when the quantity produced increases. Hence option 4th is correct.