Production and cost — Economics STD 12 Humanities & Commerce — Question
Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsProduction and cost2 Marks
Question
'AC is more consistent than MC'. Discuss.
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Answer
AC is more consistent because it is not directly affected by the law of variable proportion. On the other hand, MC is directly affected by law of variable proportion due to which it is narrow 'U' shaped curve whereas, AC curve is wide 'U'shaped curve.
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