What is the shape of an average cost curve?
For unlimited access to Homework Help, a Homework+ subscription is required.
What is the shape of a long run average cost curve
The average total cost curve reflects the shape of both the average fixed cost and average variable cost curves.
Which of the following is true about theβ long-run average costβ curve?
1. It is a rectangular hyperbola in shape.
2. Its shape can be attributed to the law of variable proportions.
3. Its shape can be attributed to the law of returns to scale.
4. It is derived by adding the average variable cost and average fixed cost curves.