Asked by
angel bustamante
on Nov 04, 2024Verified
Which statement is not true regarding the total variable cost curve?
A) It increases as output increases.
B) It shows the variable cost of production given current factor prices.
C) It starts at the origin.
D) It is a horizontal line.
Variable Cost Curve
The variable cost curve shows the relationship between total variable cost and the level of a firm's output, demonstrating how costs fluctuate with changes in production.
Factor Prices
The prices paid for the use of factors of production such as land, labor, and capital, which influence cost of production and economic decisions.
Output Increases
A situation where the production volume of goods or services in a company, industry, or economy rises, often due to higher demand, improved efficiency, or technological advancements.
- Interpret the behavior of total variable, total fixed, and total costs in relation to output level changes.
Verified Answer
AM
Learning Objectives
- Interpret the behavior of total variable, total fixed, and total costs in relation to output level changes.