In the short run:A) TVC will increase for a time at a diminishing rate,but then beyond some point will increase at an increasing rate.B) TVC will increase for a time at an increasing rate,but then beyond some point will increase at a diminishing rate.C) TVC will increase by the same absolute amount for each additional unit of output produced.D) one cannot generalize concerning the behavior of TVC as output increases.

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In the short run:A)  TVC will increase for a time at a diminishing rate,but then beyond some point will increase at an increasing rate.B)  TVC will increase for a time at an increasing rate,but then beyond some point will increase at a diminishing rate.C)  TVC will increase by the same absolute amount for each additional unit of output produced.D)  one cannot generalize concerning the behavior of TVC as output increases.

Amaris Irvin · Accepted Answer

Final Answer : A, Explanation :  In the short run, Total Variable Cost (TVC) typically increases at a diminishing rate initially due to increased efficiency and utilization of resources. However, beyond a certain point of production, it starts to increase at an increasing rate due to factors like overtime pay, inefficiencies, and the costs associated with over-utilizing resources. This behavior is illustrated by the law of diminishing returns.

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