Answer to Question #108835 in Microeconomics for Prashant

Question

when the first stage of law of variable proportions begins to operate the tvc curve

Answer 1

Total Variable Cost (TVC) curve is a graphical representation of the relationship between the total variable cost spent by a firm in the short-run for production of goods and the quantity of goods produced.

In the first stage of law of variable proportions, the TVC curve starts from the origin meaning that variable cost is zero. As the output increases, the TVC also rises.