Question: a) Why does total variable cost initially increase at a decreasing rate and later at an increasing rate? b) When quantity is zero, how, how

a) Why does total variable cost initially increase at a decreasing rate and later at an increasing rate?

b) When quantity is zero, how, how are total fixed and total cost related.

c) Explain the shape of the long run average cost curve.

d) Use the long run average cost curve and explain the difference between economies, diseconomies and constant returns to scale. Provide examples.

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