Which of the Following Cost Curves Is Never U-Shaped

question 61

Multiple Choice

Which of the following cost curves is never U-shaped?

• A)the average total cost curve
• B)the average fixed cost curve
• C)the marginal cost curve
• D)the average variable cost curve

---

Definitions:

Standard Bikes

Refers to bicycles that adhere to specific industry norms and standards, typically meant for average or typical use scenarios.

Fixed Costs

Costs that do not vary with the level of output or sales over the short term, such as rent or salaries.

Variable Costs

Costs that vary in direct proportion to changes in production or sales volume, such as materials and labor.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, determined by the proportion of fixed costs to variable costs.