Time management is very much important in IIT JAM. The eduncle test series for IIT JAM Mathematical Statistics helped me a lot in this portion. I am very thankful to the test series I bought from eduncle.
Nilanjan Bhowmick AIR 3, CSIR NET (Earth Science)
Nisha Sharma posted an Question
August 27, 2021 • 21:37 pm
![]()
30 points
30 points
- UGC NET
- Commerce
Why avc & ac curve is u shaped?? please xplain me by giving examples
why avc & ac curve is u shaped?? please xplain me by giving examples
1 Answer(s)
Answer Now
- 0 Likes
- 1 Comments
- 0 Shares
Do You Want Better RANK in Your Exam?
Start Your Preparations with Eduncle’s FREE Study Material
- Updated Syllabus, Paper Pattern & Full Exam Details
- Sample Theory of Most Important Topic
- Model Test Paper with Detailed Solutions
- Last 5 Years Question Papers & Answers
Sign Up to Download FREE Study Material Worth Rs. 500/-
Rucha rajesh shingvekar![best-answer]()
The AVC curve is a U-shaped curve because of the application of the Law of Variable Returns to Factor. As the quantity produced of a commodity increases, the average variable costs diminish, reach a minimum and then start to rise. For example, the variable cost of producing 80 haircuts is $400, so the average variable cost is $400/80, or $5 per haircut. Note that at any level of output, the average variable cost curve will always lie below the curve for average total cost, as shown in Figure. 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. To understand why this happens, you need to know what the average cost is. In economics, there are two types of costs: variable and fixed.