If an average cost curve is U-shaped,then:
A)costs per unit are constant throughout the entire range of production.
B)costs per unit are declining throughout the entire range of production.
C)costs per unit are increasing throughout the entire range of production.
D)costs per unit first rise,then reach a maximum,and then begin to fall as output is increased.
E)costs per unit first fall,then reach a minimum,and then increase as output is increased.

Question

Quizplus · Accepted Answer

A U-shaped average cost curve indicates that costs per unit decrease initially, reach a minimum point, and then increase as output continues to rise.

If an Average Cost Curve Is U-Shaped,then