Why is MC curve U shape? Explain with the support of relevant diagrams.
It can actually be mentioned that marginal cost curve is u shaped because initially at lower amount of production, what happens is that there would be more amused capacity of the existing inputs as a result of which you can produce more with same input as a result of which the marginal cost keeps on decreasing in the whole but at a point what happens is that the total capacity of the input the saturated and you have to go for new inputs as a result of which in the the cost seems to increase with which the marginal cost increases and because it is decreasing in the beginning and increasing later on it is considered as u shaped curve
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