Average fixed cost curves will be U-shaped if the marginal cost curve is upward sloping.

Name: Average fixed cost curves will be U-shaped if the marginal cost curve is upward sloping.
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Question

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Average fixed cost (AFC) curves are always downward sloping because fixed costs are spread over a larger quantity of output as production increases, leading to a decrease in the average fixed cost per unit. The shape of the marginal cost curve does not affect this trend.

Average Fixed Cost Curves Will Be U-Shaped If the Marginal