U-Shaped Average Cost Curve(redirected from U Shaped Average Cost Curves)
U-Shaped Average Cost Curve
A model of how the average cost for producing a unit changes over time. The average cost per unit begins high and drops as production increases. Eventually, the cost begins to rise again as marginal costs increase. It is so called because, when plotted on a chart, the cost curve looks like the letter U.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved