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प्रश्न
Why is the Average Variable Cost (AVC) curve U-shaped?
पर्याय
Because fixed cost keeps increasing
Due to first falling then rising efficiency in using variable inputs
Because total cost always remains constant
Because output always decreases
MCQ
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उत्तर
Due to first falling then rising efficiency in using variable inputs
Explanation:
AVC falls at first as efficiency improves, then rises when too many variable inputs cause diminishing returns, giving a U-shape.
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