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The average cost curve fall at the initial stage due to increasing returns on variable factors of production. It then rises due to diminishing returns, which causes costs Êto rise.

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What is the initial stage of the rationality model?

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Why is the Marginal cost curve downward sloping?

Marginal cost curve is u-shaped curve, this is due to law of variable proportion(return to factors), firstly, there is an increasing return (i.e, decreasing cost) then there is a stage of constant returns (i.e, constant cost) then lastly comes the stage of decreasing returns (i.e increasing cost), that`s why marginal cost curve first slopes downward and then slope upward and become u-shaped.


What is an explaination of bath-tub curve and tero-technology?

The Bath-tub curve is the curve of failue rate of the equipment or a machine with respect to time.In the initial phase the failure rate is much higher and it goes on reducing with the warranty period getting over.this failure can be due to the design defect or the installation defect. During the later stage also the failure rate is higher.this is attributed to aeging or wear and tear of the machine.In between this two phases there is a very less possibility of failure.the failure rate is constant and can be because of some external factor.The curve is in the shape of the bath tub


Show with examples that if the marginal product is always decreasing the average product is always above the marginal product?

Paper silver has been heavily shorted in the last few weeks. Low volume indicated by the 30& 60 day averages has not brought down the 200 day average and the price of retail silver on the market. see links below Note - this is also a great example of the illegal market manipulation our government is enabling. Now if you want to do the rest of your homework by yourself research the difference between paper silver and real silver and also note the impact of the electronic precious metal funds.


What stage of rostow models in haiti?

Stage 3 i would say as it reached stage 3 until the earthquake where it went back down