Economy, asked by smrutirani322, 5 months ago

what is the relationship between tvc, tfc and tc​

Answers

Answered by anirbanbhukta551
4

Explanation:

TVC, TC, and TFC curves in a single diagram.

(i) TC is divided into two parts TFC and TVC such that TC = TFC + TVC.

(ii) TFC is the overhead cost and it remains constant or fixed whatever be the level of output. TFC curve is a horizontal line parallel to the x-axis.

(iii) TVC is cost due to increased use of variable factors like raw material, labour, etc. TVC is inverse S-shaped starting from the origin due to law of variable proportion.

(iv) TC is aggregate of TFC and TVC. TC curve is inverse S-shaped starting from the level of fixed cost. The reason behind it shape is the law of variable proportion.

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Answered by anushree92004
3

Answer:

(i) TC is divided into two parts TFC and TVC such that TC = TFC + TVC.

(ii) TFC is the overhead cost and it remains constant or fixed whatever be the level of output. TFC curve is a horizontal line parallel to the x-axis.

(iii) TVC is cost due to increased use of variable factors like raw material, labour, etc. TVC is inverse S-shaped starting from the origin due to law of variable proportion.

(iv) TC is aggregate of TFC and TVC. TC curve is inverse S-shaped starting from the level of fixed cost. The reason behind it shape is the law of variable proportion.

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