Question

Explain why TVC curve is inverse S-shaped curve?

Answer 1

hi there,

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It slopes upward left to right, as inverse S-shaped. This slope of TVC curveshows that the total variable cost increases initially at a decreasing rate as the total output increases and subsequently it increases at an increasing rate with the increase in the output. ... Similarly, TC is the total costcurve.

Answer 2

TVC curve is inverse S-shaped because of the following reasons-

• The curve represents the change in the total variable cost as the total output changes.
• The output begins to increase at an increasing rate which leads the variable cost to increase but at a decreasing rate.
• Now the output increases but at a decreasing rate which leads to an increase in the variable cost at an increasing rate.
• This change gives it an inverse S shape.

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