Why does the difference between TC and VC constant?
Answers
Fixed cost (FC): the cost of all fixed inputs in a production process. Another way of saying this: production costs that do not change with the quantity of output produced. Variable cost (VC): the cost of all variable inputs in a production process .
PLEASE MARK ME AS BRAINLEIST AND FOLLOW ME FOR ANY QUERIES AND THANKS MY ALL ANSWERS .
Answer:
The Vertical difference TVC and TC is equal to-
TC=TFC+TVC
Thus, the difference between TVC and TC is equal to the amount of TFC.
The law of variable proportion explains the change in output when one factor is kept constant while the other factors are changed. Thus there should be at least one fixed factor while others may be variable.
The difference between TC and TVC will always be constant because TC-TVC=TFC which is constant at any level of output.
Explanation: