Relationship b/w TC , TVC , and TFC Show diagramatically also.

1.	Relationship b/w TC , TVC , and TFC Show diagramatically also.
Answer» Total fixed cost (TFC) is represented by a straight line parallel to X-axis and it remains unchanged for all output levels in a time period. TVC-is zero, when output is zero. It increases as output increases. The shape of TVC curve depends on the shape of the production function. TC is the sum of TFC and TVC. When no variable output is added, TC is equal to TFC. The TC curve is shaped exactly like the TVC curve, but is placed above the totalvariable costby the units of total fixed cost.

Answer»

Total fixed cost (TFC) is represented by a straight line parallel to X-axis and it remains unchanged for all output levels in a time period.

TVC-is zero, when output is zero. It increases as output increases. The shape of TVC curve depends on the shape of the production function.

TC is the sum of TFC and TVC. When no variable output is added, TC is equal to TFC.

The TC curve is shaped exactly like the TVC curve, but is placed above the totalvariable costby the units of total fixed cost.

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