Why can a marginal cost curve be "U" shaped?

1 Answer
Nallasivam V
Dec 26, 2015

Refer the explanation section

Explanation:

Marginal Cost curve is U shaped because -
1 In the falling part of the curve, Law of Increasing Returns Operates.
2 In the rising part of the curve Law of Decreasing Returns Operates.
3 At the minimum point of the MC curve, Law of Constant Returns Operates.

Related questions
See all questions in Marginal analysis
Impact of this question
4406 views around the world
You can reuse this answer
Creative Commons License