Question

Why are tc and tvc parallel to each other?

Answer 1

$\bf {Total \:Cost}$ is the total expence of a firm which is spent on the production in a decided period.

TC curve starts from the beginning point of Total Fixed Cost curve. Total Variable Cost curve starts from zero level of production. TFC curve is always constant at the all levels of production. It is parallel to X axis.

TC and TVC curves are parallel to each other and the vertical distance between them remains the same at all levels of output because the gap between them represents TFC which remains constant at all levels of output.

Answer 2

Answer:

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Total Cost is the total expence of a firm which is spent on the production in a decided period.

TC curve starts from the beginning point of Total Fixed Cost curve. Total Variable Cost curve starts from zero level of production. TFC curve is always constant at the all levels of production. It is parallel to X axis.

TC and TVC curves are parallel to each other and the vertical distance between them remains the same at all levels of output because the gap between them represents TFC which remains constant at all levels of output.