Question

As ports have produced higher quantities of loading and unloading services, have there been upward movements along their AVC and MC curves or upward shifts in those curves? Explain.

Short answer

There has been an upward movement in the AVC and MC curve.

Step-by-step solution

Given Information

AVC alludes to the typical variable expense of creation. It is the per-unit cost of delivering a result and is acquired by separating the complete variable expense of creation by the units of result delivered.

MC is the negligible expense of creation which alludes to the expansion in absolute expense when one additional unit of a result is delivered

Explanation

An expansion in the number of procedures on the Ports, for example, expansion in the number of huge compartments, expansion in the volume of products being shipped, and higher stacking and dumping administrations have to lead to an expansion in the normal variable expense and minor expense of Port activities. The expansion in these per-unit costs has brought about a vertical development in the AVC and the MC bends.