Which of the following curves cannot be U-shaped?

Correct option is B

· The A.F.C (Average Fixed Cost) curve cannot be U-shaped. It always declines as output increases since fixed costs are constant, and average fixed cost is calculated by dividing fixed costs by the output.
· The A.V.C (Average Variable Cost) curve, A.C (Average Cost) curve, and M.C (Marginal Cost) curve can exhibit U-shaped characteristics depending on the stage of production, as they reflect changes in production efficiency.
Information Booster
1. A.F.C curve always decreases as output increases, since fixed costs are distributed over more units.
2. A.V.C curve is U-shaped because of increasing returns initially and then diminishing returns to variable inputs.
3. A.C curve is U-shaped due to the combined effect of both fixed and variable costs, which first decline and then rise as output increases.
4. M.C curve typically has a U-shape, reflecting the marginal cost of producing an additional unit of output, which declines before rising.
Additional Information
· A.F.C (Incorrect): As it declines, it cannot form a U-shape like the other curves.
· M.C (Correct): The marginal cost curve is U-shaped because it first decreases and then increases with higher output.