Question

State the reason why tvc curve and tc curve are parallel to each other

Answer 1

Heya user ✨✨

⏩TVC (total variable cost)is parallel to TC(total cost) because it shows the difference between TC and TVC (=TFC) is constant.

✨ Hope this helps you ✨

Answer 2

Total Cost Curve is always parallel to Total Variable Cost Curve because of Total Fixed Cost Curve.

There are 2 kinds of costs: TFC and TVC.

Total fixed cost remains same throughtout the short run and TVC are variable in the sense that it changes in the short run.

Thus, Total Cost is the sum of TVC and TFC.

As TFC is constant, thus the only difference between TC and TVC is TFC which makes the curves parallel to each other.