The total variable cost curve can be derived directly from the:
A) marginal product curve.
B) total product curve.
C) demand curve.
D) supply curve.

Question

Quizplus · Accepted Answer

The total variable cost (TVC) is the sum of all costs that change as output increases within the relevant range of production. The TVC curve is derived from the total product curve, which shows the relationship between the quantity of output produced and the amount of variable input used. As production increases, the total variable cost curve will also increase because more variable inputs will be needed to produce more output. The marginal product curve relates the change in output to a change in input, while the demand and supply curves relate to market conditions and not production costs.

The Total Variable Cost Curve Can Be Derived Directly from The