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

Marginal cost curve

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Average variable cost curve

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Average fixed cost curve

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Average cost curve

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Solution

The correct option is C Average fixed cost curve
The Average fixed cost curve represent the relationship between average fixed cost and quantity produced. It is relatively high when the quantity of output is small and declines as the quantity produced increases. AFC curve is negatively sloped and therefore can not be U shaped.

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