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Which of the Following Curves Are U-Shaped

question 202

Essay

Which of the following curves are U-shaped?
i.average variable cost curve
ii.average fixed cost curve
iii.average total cost curve
A) i and ii
B) i and iii
C) ii and iii
D) i, ii, and iii
E) only ii


Definitions:

Indifference Curves

Indifference curves are graphical representations used in microeconomics to show combinations of two goods among which a consumer is indifferent, reflecting their preferences and consumption choices.

Marginal Utility

The change in satisfaction or utility that a person receives from consuming an additional unit of a good or service.

Utility-Maximizing

The concept in economics and consumer theory where individuals or firms make decisions that lead to the highest level of satisfaction or benefit within their constraints.

Total Utility

The cumulative satisfaction or usefulness that a person gains from consuming all units of a particular good or service.

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