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Why should TVC increase at decreasing …

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Why should TVC increase at decreasing rate and then at increasing rate?what was the reason??

    • Posted by Annika Sharma 7 years, 10 months ago

    CBSE > Class 12 > Economics
    • 3 answers

    Dhairya Gupta 7 years, 10 months ago

    Like in the first phase output increases at increasing rate so it is obvious that the cost will increase at decreasing rate. Now similarly in 2 and 3 phase output decreases due to inefficient coordination between fixed and variable factors which will cause a rise cost

    2Thank You

    Annika Sharma 7 years, 10 months ago

    But how it is related to law of variable proportion??

    0Thank You

    Dhairya Gupta 7 years, 10 months ago

    Due to law of variable proportion

    2Thank You

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