Economy, asked by natashamerlin36, 6 months ago

Why does the difference between TC and VC constant?​

Answers

Answered by sahoorudramadhab2007
1

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 .

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Answered by bhabanisankar123
9

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:

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