All but one of the following is not an U-shaped curve.

The AVC curve

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The AFC curve

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The AC curve

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The MC curve

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Solution

The correct option is D The AFC curve
The AFC curve is downward sloping because as output increases, the firm spreads its fixed costs over larger and larger amounts of output.
Hence, the correct option is B.

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Similar questions

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Suppose that a firm's total fixed cost is Rs. 100, and the marginal cost schedule of a firm is the following :

$\begin{matrix} Output (in units) & 1 & 2 & 3 & 4 & 5 & 6 & 7 Marginal cost (in Rs) & 10 & 20 & 30 & 40 & 50 & 60 & 70 \end{matrix}$

(i) Is the MC curve U-shaped ?

(ii) Derive the AVC schedule. Will the AVC curve U-shaped ? Discuss.

What is the shape of the AFC curve?

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