Why Ac curve is u shape
CBSE, JEE, NEET, CUET
Question Bank, Mock Tests, Exam Papers
NCERT Solutions, Sample Papers, Notes, Videos
Posted by Dev Sharma 7 years ago
- 1 answers
Test
Related Questions
Posted by Sakshi Singh 5 months, 2 weeks ago
- 1 answers
Posted by Dipika Sharma 1 year, 6 months ago
- 0 answers
Posted by Nandita Sharma 1 year, 6 months ago
- 1 answers
Posted by Naman Jain 1 year, 5 months ago
- 1 answers
Posted by Mehar Ansari 1 year, 6 months ago
- 0 answers
Posted by Niyati Garg 1 year, 5 months ago
- 0 answers
Posted by Rijum Karlo 1 year, 6 months ago
- 0 answers
Posted by Shruti Singh 1 year, 6 months ago
- 0 answers
myCBSEguide
Trusted by 1 Crore+ Students
Test Generator
Create papers online. It's FREE.
CUET Mock Tests
75,000+ questions to practice only on myCBSEguide app
Gaurav Seth 7 years ago
The main reason for this ‘U’ shaped AC curve is the operation of the law of variable proportion. We know as output increases, law of increasing return operates in the initial stages.
At this stage, when a firm increases its output, it gets economies and the result is decline in Average Cost. After the point of optimum combination, economies turn into diseconomies and result in increase in output and Average Cost. This is the stage of law of diminishing returns.
0Thank You