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Shannon Grecco
on Oct 14, 2024

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If marginal costs increase as output increases, then the average fixed cost curve will be U-shaped.

Marginal Costs

The increase in total production cost that arises from producing one additional unit of a good or service.

Average Fixed Cost Curve

A graph that shows the fixed costs of production divided by the quantity of output produced, illustrating how these costs dilute over larger production volumes.

U-Shaped

A descriptive term often used in economics and statistics to describe a graph or curve that resembles the shape of the letter "U", indicating a particular kind of relationship or trend.

  • Comprehend the association between marginal, average, and total costs within different production settings.
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JL
James LloydOct 20, 2024
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