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The total cost curve becomes more steeper or shallow as more output is produced?
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User Yeray
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Final answer:

The total cost curve becomes steeper as more output is produced.

Step-by-step explanation:

The total cost curve becomes steeper as more output is produced. This is because as the firm produces higher quantities of output, it requires greater quantities of inputs, which cost more to acquire. The increase in costs at a faster rate than the increase in output leads to a steeper total cost curve.

For example, let's say a firm produces 100 units of output and incurs a total cost of $1,000. If it wants to increase production to 200 units, it may need to buy more raw materials or hire additional labor, which will increase its total cost. If the total cost increases to $2,500 for 200 units of output, the total cost curve has become steeper.

User DRokie
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