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Question
LRAC curve is ____.
LRAC curve is ____.
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Solution
The correct option is B U shaped
The nature of the short period Average Cost Curve is 'U' shaped. To begin with, the Average Costs are high at low levels of output because both the Average Fixed Costs and Average Variable Costs are more.
Nature 'U' shaped short-run Average Cost curve can be attributed to the law of variable proportions.
The nature of the short period Average Cost Curve is 'U' shaped. To begin with, the Average Costs are high at low levels of output because both the Average Fixed Costs and Average Variable Costs are more.
Nature 'U' shaped short-run Average Cost curve can be attributed to the law of variable proportions.
Nature 'U' shaped short-run Average Cost curve can be attributed to the law of variable proportions.
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