Question 1
Total variable costs
◦ initially increase as output increases, and then decrease.
◦ always decrease with output.
◦ always increase with output.
◦ initially decrease and then increase with output.
Question 2
The formula for
MC is
◦
TVC/
q.
◦
q/
TVC.
◦ Δ
TVC/
q.
◦ Δ
TVC/Δ
q.