Using schedule and diagram discuss the relationship between TC , TFC ,

1.	Using schedule and diagram discuss the relationship between TC , TFC , TVC .
Answer» \tOutputFixed CostVariable CostTotal Cost04004014020602403070340327244034745403676640387874040808404686\t\tWe see that the Fixed Cost remains the same even as production increases from 0 to 8 units. Thus the value of FC = 40\tIt can be noted that the Variable Cost increases as the output increases. The VC increases at a diminishing rate till 7 units of output, after which it starts increasing at an increasing rate.\tThe final column shows the\xa0Total Cost\xa0which is the sum of FC and VC and increases as the output increases.

Discussion