The correct answer is: A. Rises continuously.
The total cost (TC) curve is a graph that shows the total cost of producing a certain quantity of output. The TC curve always rises as output increases, because it takes more resources to produce more output. The TC curve may be smooth or it may be jagged, but it always slopes upward.
The TC curve is different from the average cost (AC) curve and the marginal cost (MC) curve. The AC curve shows the average cost of producing a certain quantity of output. The MC curve shows the additional cost of producing one more unit of output. The AC curve and the MC curve may intersect at a minimum point, but the TC curve does not have a minimum point.
The TC curve is important because it shows the total cost of production. This information is useful for businesses, because it helps them to determine how much they should charge for their products. The TC curve is also useful for economists, because it helps them to understand how businesses operate.
Here is a brief explanation of each option:
- Option A: The TC curve rises continuously. This is because it takes more resources to produce more output. The more output that is produced, the higher the total cost will be.
- Option B: The TC curve falls after reaching a maximum. This is not possible, because the TC curve always rises as output increases.
- Option C: The TC curve is horizontal. This is also not possible, because the TC curve always slopes upward.
- Option D: None of the above. This is the correct answer, because the TC curve rises continuously.