Question

reason for inverted S shape of TVC curve with daigram​

Answer 1

Explanation:

The TVC curve is an inverted S upward sloping curve. The main reason for the shape of the TVC curve is the operation of the law of variable proportion. As the total output increases, the TVC initially increases at a decreasing when the production is experiencing increasing returns.

TVC is zero at zero level of output. As more units of output are produced. TVC increases at decreasing rete and later it increases at increasing rate. The inverse S-shaped of TVC is because of application of law of variable proportions.

Short-run costs are important to understanding costs in economics. The distinction between short-run and long-run based on fixed and variable factors of production makes the concept of understanding short run costs simpler. Let us understand the concepts by way of examples, diagrams for graphical representation