4.1.4.4 Total Cost Curves - TC, TVC, TFC VIDEO

What does the total fixed cost curve represent in the short run?

• A variable line based on production

• A decreasing line as output increases

• A horizontal line indicating constant costs

• An increasing line due to rising costs

What economic law heavily influences the shape of the variable cost curve?

• Law of supply and demand

• Law of increasing returns

• Law of diminishing marginal returns

• Law of variable proportions

What is the initial impact of hiring workers on productivity according to the video?

• Decreases productivity slightly

• No impact on productivity

• Leads to productivity gains

• Reduces overall output

How does output relate to costs when productivity gains are being realized?

• Output increases slower than costs

• Output and costs increase at the same rate

• Output increases faster than costs

• Costs decrease as output increases

What happens when diminishing returns set in according to the video?

• Output overtakes costs exponentially

• Costs begin to increase faster than output

• Productivity and output both increase

• Costs decrease as output increases

How is the total cost curve derived from the variable and fixed costs?

• Total cost equals total variable cost minus total fixed cost

• Total cost is the sum of total variable cost and total fixed cost

• Total cost is the average of variable and fixed costs

• Total cost is independent of variable and fixed costs