Average variable cost curve is a U-shapedcurve.

1.	Average variable cost curve is a U-shapedcurve.
Answer» <html><body><p></p>Solution :True. Average variable <a href="https://interviewquestions.tuteehub.com/tag/cost-25707" style="font-weight:bold;" target="_blank" title="Click to know more about COST">COST</a> is a U-shaped curve as it <a href="https://interviewquestions.tuteehub.com/tag/initially-516121" style="font-weight:bold;" target="_blank" title="Click to know more about INITIALLY">INITIALLY</a> falls, then remains constant for a while and <a href="https://interviewquestions.tuteehub.com/tag/finally-461212" style="font-weight:bold;" target="_blank" title="Click to know more about FINALLY">FINALLY</a> starts increasing. It happens due to three phases of Law of Variable <a href="https://interviewquestions.tuteehub.com/tag/proportion-1170266" style="font-weight:bold;" target="_blank" title="Click to know more about PROPORTION">PROPORTION</a>..</body></html>

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