passwella.
Menu

WAEC Economics 2015 Question 20

Question 20

Theory of Costs and Revenue

Which of the following cost curves is not U-shaped? The

  1. A.marginal cost curve
  2. B.average fixed cost curve
  3. C.average total cost curve
  4. D.average variable cost curve.
Show the answer and explanation

Answer: B (average fixed cost curve)

Explanation

AFC keeps falling as output rises because the same fixed cost is spread over more units.