Question

Would you please provide at least one particular industry as an example to illustrate that MC is not U-shaped? A reference link (URL) to an article that supports your example will be a plus. use your own words, please.

Answer 1

Ans. MC is U shaped because , initially there is Economies of Scale , after that there comes Constant Economies of Scale which inturn becomes Dis Economies is Scale. But one industry , where MC is not U shaped is MONOPOLY . For eg , in 19th and 20 th century , US Steel was majorly a monopoly and competition was almost non existent in this sector. Due to this , the MC curve of the industry would be horizontal ie change in production won't change the Marginal Cost of the Company. Another example in today's world is Indian Railways , another monopoly in the rail Sector in India where no private company is allowed.

Sorry , we are not allowed to post links to any site in our answer , so I'll not be able to provide reference link to any article.

I hope this helps. Best of luck.

keep Chegging.