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Which of the following is an inverted ‘U’ shaped curve ?
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- Average cost
- Marginal cost
- Total cost
- Fixed cost
- Average cost
Correct Option: A
In economics, a cost curve is a graph of the costs of production as a function of total quantity produced. Both the Short-run average total cost curve (SRAC) and Long-run average cost curve (LRAC) curves are typically expressed as U-shaped. However, the shapes of the curves are not due to the same factors.
