what is the relation among TC,TVC,&TFC
hello,
tc stands for total cost , tvc for total variable cost and tfc for total fixed cost.
tc is the sum of tvc and tfc . that means ,
tc = tvc+tfc.
at zero level of output , tc= tfc.
tc and tvc, both are inverse in shape.
tfc is basically represented by a straight line made parallel to x axis and it remains unchanged at various output levels in a time frame. on other hand ,tvc is zero when output is zero, and it increases with increase in output. shape of tvc curve depends on the shape of production function.
tc curved is of the same shape as tvc curve , but it is placed above tvc, by the units of tfc.
hope it helps
Hello,
TC is Total Cost, TFC is Total Fixed Cost and TVC is Total Variable Cost.
TC is the sum of TVC and TFC i.e. TC = TFC+TVC
TC and TVC in general are both parallel to each other. TVC is 0 at zero levels of output, it increases with increase in level of the outputs, similarly, TC also increases with increase in levels of the output. Generally both TC and TVC are inverse to each other.
Hope this might help you,
Thank you :)
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