Abstract
Abstract Total variable cost measures the total variable costs of production in the short run. Total variable costs are those costs that vary with the output level produced. Typically, as output increases, so does the need for inputs such as labor, materials, and electricity, so total variable costs are directly related to wages and prices that a firm must pay for inputs. In addition to the per unit input cost, the marginal product of inputs and the technology employed by the company influence the level of total variable cost. If input prices are constant, the curvature of a total variable cost curve is determined by the production function.
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