The average fixed cost curve is not U shaped. This curve represents the average fixed cost of production, which is the total fixed cost divided by the quantity of output produced. Since fixed costs do not vary with the level of output, the average fixed cost curve slopes downward as output increases, but approaches zero as output approaches infinity.
In contrast, the marginal cost curve, average total cost curve, and average variable cost curve are all U-shaped. The marginal cost curve shows the additional cost of producing one more unit of output, which initially decreases due to economies of scale but eventually increases due to diminishing marginal returns. This gives the marginal cost curve its characteristic U shape.
The average total cost curve, which represents the total cost per unit of output produced, is also U-shaped because it is influenced by both fixed and variable costs. At low levels of output, the average total cost is high due to the spreading of fixed costs over a smaller output, while at high levels of output, the average total cost increases due to the law of diminishing returns.
The average variable cost curve, which represents the variable cost per unit of output produced, is also U-shaped due to the influence of diminishing marginal returns on variable costs.
In summary, the average fixed cost curve is not U-shaped because it represents the fixed cost per unit of output, which does not vary with changes in output.