Question

MC determines the shape of both TC and TVC curves. explain how?
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Answer 1

Answer:

MC= ΔTC/Δ Q (where ΔTC =change in total output, Δ Q =change in output) After sale starts increasing MC decreases initially and thus TVC is U shaped and TC is also U shaped but as it includes TFC being constant , it is slightly higher than TVC. ... Thus MC determines the shape of both TC and TVC curve.

Hope it helps!

Answer 2

The shape of the total cost (TC) curve is determined by the shape of the total fixed cost (TFC) curve and the total variable cost (TVC) curve. The shape of the TVC curve is also determined by the marginal cost (MC) curve.

• The TFC curve is generally a horizontal line because it represents the fixed costs that do not change with changes in output.
• The TVC curve is determined by the relationship between the variable cost per unit of output and the quantity of output.
• If the variable cost per unit of output is constant, then the TVC curve will be a horizontal line. If the variable cost per unit of output increases as the quantity of output increases, then the TVC curve will be upward sloping.
• If the variable cost per unit of output decreases as the quantity of output increases, then the TVC curve will be downward sloping.

• The MC curve is the derivative of the TC curve, which means it represents the slope of the TC curve at any given point.
• If the TC curve is upward sloping, then the MC curve will also be upward sloping. If the TC curve is downward sloping, then the MC curve will also be downward sloping.

Therefore, the shape of the MC curve determines the shape of the TVC curve, which in turn determines the shape of the TC curve.

If the MC curve is upward sloping, then the TC curve will also be upward sloping. If the MC curve is downward sloping, then the TC curve will also be downward sloping.

To learn more about marginal cost from the given link.

https://brainly.in/question/29407761

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