Which of the following statements is true?
A) The total variable cost curve decreases as output increases.
B) The total variable cost curve shows the variable costs of production given current factor prices.
C) Total variable cost is always greater than total fixed cost.
D) Total variable cost is inversely related to output.

Question

Quizplus · Accepted Answer

The total variable cost curve represents the variable costs associated with production at different levels of output, assuming factor prices remain constant. This curve typically increases as output increases, reflecting the fact that producing more units requires more variable inputs.

Which of the Following Statements Is True