Which statement about the total variable cost curve is true ?
A) It begins at the origin and increases before decreasing again.
B) The total variable cost curve is the same at all levels of output.
C) The total variable cost curve is increasing but at a decreasing rate.
D) It begins at the origin and is always increasing.

Question

Quizplus · Accepted Answer

The total variable cost curve starts from the origin because when production is zero, variable costs are also zero. It always increases as production increases, reflecting the fact that more resources (which incur costs) are needed to produce more goods.

Which Statement About the Total Variable Cost Curve Is True