U Shaped average cost curve is based on:

CA Foundation · Business Economics · MTP · April 2025
U Shaped average cost curve is based on:
(A) A. Law of variance proportions
(B) B. Law of increasing cost
(C) C. Law of decreasing cost
(D) D. None of these

Suggested Answer and Working Notes:

Correct Answer: Option (A)

A. Law of variance proportions

Topics: Theory of Production and Cost

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