Total variable costs ________ with decreasing output.

A) always increase
B) always decrease
C) initially increase and then decrease
D) initially decrease and then increase

Total Variable Costs

The sum of expenses that vary with production volume, including costs for raw materials, labor, and utilities directly involved in the production process.

Decreasing Output

A situation where a firm produces less output over time, often due to rising costs or decreased demand.

Always Decrease

A scenario where a variable or condition consistently declines over a period of time without increasing.