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Not Long Ago, the Canadian Edition of a Famous Textbook

Question 49

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Not long ago, the Canadian edition of a famous textbook on principles of economics had a diagram depicting a U-shaped average fixed cost curve.This occasioned great mirth around the campfires of some economists in the Great White North and did much to shorten a long hard winter.Explain what is wrong with drawing a U-shaped average fixed cost curve.

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Average fixed cost must declin...

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