What accounts for the ‘U-shaped’ of the short run average cost (AC) curve?
ECONOMICS
WAEC 2009
What accounts for the ‘U-shaped’ of the short run average cost (AC) curve?
- A. the law of variable proportions
- B. increasing returns to scale
- C. decreasing use of inputs
- D. change output during the production period
Correct Answer: A. the law of variable proportions
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