Question

costs which vary directly with the size of output
produced. Such costs change with change in the
level of output. In other words, total variable
Total Variable costs: TVC is sum of the
UEU
Variable Cost
TVC CU
C
Q
costs go up as output is increased and fall as
output is decreased. TVC is zero at zero output.
Therefore, TVC curve starts from the origin.
TVC increases at a decreasing rate in the
beginning, then at a constant rate and finally at
an increasing rate making TVC curve concave
in its shape as shown in the following Fig. 10.2.
TVC first rises at a decreasing rate which
means every new unit of output produced
involves a lower cost because of increase in
efficiency. After that TVC rises at an increasing
rate which means with every new unit of output
is produced at a higher cost because of fall in
efficiency of inputs or due to over utilisation of
fixed inputs.


question
1.what happens to TVC as output increases?​

Answer 1

Answer:

it's cost increases and unit of rate of an tvc decrease