Asked by
Donald Santamaria
on Nov 25, 2024
Verified
In the short run,
A) TVC will increase for a time at a diminishing rate, but then beyond some point will increase at an increasing rate.
B) TVC will increase for a time at an increasing rate, but then beyond some point will increase at a diminishing rate.
C) TVC will increase by the same absolute amount for each additional unit of output produced.
D) one cannot generalize concerning the behavior of TVC as output increases.
TVC
Total Variable Cost; the entire cost associated with producing a given output level that varies with the quantity of output.
Increasing Rate
A situation where something grows or rises in value at a progressively higher pace over time.
- Understand the concepts of increasing and diminishing marginal returns and their impact on cost.
Verified Answer
MM
Learning Objectives
- Understand the concepts of increasing and diminishing marginal returns and their impact on cost.