Which of the following is NOT a "U" Shaped Curve?

TVC

The correct answer is Option 4: TVC

1️⃣ LRAC (Long-Run Average Cost) - "U"-shaped ✅

• LRAC is U-shaped because of economies and diseconomies of scale.
• Initially, costs fall due to economies of scale, then remain constant (CRS), and finally rise due to diseconomies of scale.

2️⃣ LRMC (Long-Run Marginal Cost) - "U"-shaped ✅

• LRMC is also U-shaped, reflecting increasing and decreasing costs as output expands.
• Initially, marginal cost falls due to increasing returns to scale, then rises as decreasing returns to scale set in.

3️⃣ AVC (Average Variable Cost) - "U"-shaped ✅

• AVC is U-shaped due to the Law of Variable Proportions.
• As output increases, cost per unit falls initially, then reaches a minimum, and then rises due to diminishing marginal returns.

4️⃣ TVC (Total Variable Cost) - NOT U-shaped ❌

• TVC is an upward-sloping curve, not U-shaped.
• It starts at zero and continuously increases as output increases.
• TVC does not decline at any point, so it does not exhibit a U-shape.