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

1 Answer
Dec 26, 2015

Refer the explanation section


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.