Mc determines the shape of both TC and TVC curves. Explain how.
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yess this is true that mc determines the shape of tc as well as tvc as mc is the rate at which tc or tvc increases or decreases
as initially mc decreases then after starts increasing as a result tcv is u shaped whereas tc is also u shaped but the only difference is that it includes the fixed cost which remains constant due to which it is slightly higher than that of tvc
as initially mc decreases then after starts increasing as a result tcv is u shaped whereas tc is also u shaped but the only difference is that it includes the fixed cost which remains constant due to which it is slightly higher than that of tvc
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Answer:
as initially mc decreases then after starts increasing as a result tcv is u shaped whereas tc is also u shaped but the only difference is that it includes the fixed cost which remains constant due to which it is slightly higher than that of tvc
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