Question

Why does TVC increase at an increasing rate when MC increase?​

Answer 1

✅ ANSWER ✅

The cost incurred on variable factors of production is called Total Variable Cost (TVC). These costs vary with the level of output or production. ... Hence, as the variable input employed increases, the productive efficiency of variable inputs ensures that the TVC increases but at a diminishing rate.

Answer 2

Explanation:

The cost incurred on variable factors of production is called Total Variable Cost (TVC). These costs vary with the level of output or production. ... Hence, as the variable input employed increases, the productive efficiency of variable inputs ensures that the TVC increases but at a diminishing rate