Write your comment of the statement in a sentence or two:Short period – InterviewSolution

InterviewSolution

1.

Write your comment of the statement in a sentence or two:Short period TC curve starts from Y-axis.

Answer»

Yes. TC = TFC + TVC and TFC remains constant even at zero level of output.

At zero level of output,

∴ TVC = 0

Accordingly, TC curve starts from the Y-axis in the short period.

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