What does just the other day mean? One day recently, a short time ago, as in I saw her in the museum the other day. This term originally meant either “the next day” or “the preceding day” (tomorrow or yesterday). What is the meaning of just like that? phrase. You use just like that to […]
Why average cost curve is of U-shape nature explain?
Why average cost curve is of U-shape nature explain? AVC is ‘U’ shaped because of the principle of variable Proportions, which explains the three phases of the curve: Increasing returns to the variable factors, which cause average costs to fall, followed by: Constant returns, followed by: Diminishing returns, which cause costs to rise. What is […]
Why are short-run and long run cost curve U shaped?
Why are short-run and long run cost curve U shaped? The cost curves, whether short-run or long-run, are U-shaped because the cost of production first starts falling as output is increased owing to the various economies of scale. We have said before that no costs are fixed in the long-run, i.e., in the long run […]
What is short run average cost curve?
Why is MC curve U shaped Class 11?
Why is MC curve U shaped Class 11? Why is the short run marginal cost curve ‘U’-shaped? Since increasing returns means diminishing cost and diminishing returns imply increasing cost, therefore, MC first falls because of increasing returns, reaches its minimum and then rises due to operation of diminishing returns. As a result MC curve becomes […]
Why is the short run average cost curve U shaped?
Why is the short run average cost curve U shaped? Costs in the short run Short run cost curves tend to be U shaped because of diminishing returns. In the short run, capital is fixed. After a certain point, increasing extra workers leads to declining productivity. Therefore, as you employ more workers the marginal cost […]
Why is the average cost curve U shaped?
Why is the average cost curve U shaped? The average cost curve is u-shaped because costs reduce as you increase the output, up to a certain optimal point. From there, the costs begin rising as you increase the output. Average cost is defined as the total costs (fixed costs + variable costs) divided by total […]