Which of the following cost curve has the shape of a rectangular hyperbola?

Average Fixed Cost Curve.

The correct answer is Option (3) → Average Fixed Cost Curve.

The Average Fixed Cost (AFC) Curve is shaped like a rectangular hyperbola. This is because:

• Fixed cost remains constant regardless of the level of output.

• As output increases, AFC = Total Fixed Cost ÷ Output, so AFC decreases continuously, but never becomes zero.

• The curve gets flatter and approaches the horizontal axis without touching it, which gives it the shape of a rectangular hyperbola.

Other options:

• Average Cost Curve: U-shaped

• Marginal Cost Curve: U-shaped

• Variable Cost Curve: S-shaped or upward-sloping