Question

Total variable costs Group of answer choices initially increase as output increases and then decrease. always decrease with output. always increase with output. initially decrease and then increase with output.

Answer 1

Always increases with output.

Step-by-step explanation:

Total variable cost refers to the cost of producing the output and it changes with any change in the level of output. If the production volume of a particular firm increases then as a result the total variable cost also increases and if the production volume decreases then the total variable cost also decreases. It is a part of total cost.

Total cost = Total fixed cost + Total variable cost

Total variable cost is determined by multiplying the number of units produced with the variable cost per unit.