What explains that atc is u-shaped for two reasons

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Q. why does a system of marketable pollution lead to less costly pollution abatement and a higher concentration of polluted areas than a command-and-control system.

Q. Bob Edwards owns a bagel shop. Bob Hires an economist who assesses the shape of the bagel shop's average total cost curve. Bob's economist explains that ATC is U-shaped for two reasons. The first is the existence of diminishing marginal product, which causes it to rise. What would be the second reason? Assume that the marginal cost curve is Linear. (hint: the second reason relates to average fixed cost.

 

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Business Economics Q. why does a system of marketable pollution lead to less costly pollution abatement and a higher concentration of polluted areas than a command-and-control system. Q. Bob Edwards owns a bagel shop. Bob Hires an economist who assesses the shape of the bagel shop's average total cost curve. Bob's economist explains that ATC is U-shaped for two reasons. The first is the existence of diminishing marginal product, which causes it to rise. What would be the second reason? Assume that the marginal cost curve is Linear. (hint: the second reason relates to average fixed cost.

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