How do we obtain total cost curve, Microeconomics

Assignment Help:

Total cost curve (TC) is obtained by adding up vertically total fixed cost and total variable cost curves because the total cost is sum of total fixed cost and total variable cost it will be seen from that the vertical distance between the TVC curve and TC curve is constant throughout. This is because the vertical distance between the TVC and TC curves represents the amount of total fixed cost which remains unchanged as output is increased in the short run. It should also be noted that the vertical distance between the total cost curve (TC) and the total fixed curve (TFC) represents the amount of total variable costs which increase with the increase in output. The shape of the total cost distance always separated the two curves.


Related Discussions:- How do we obtain total cost curve

Comparison with our needs - structure of national income, Comparison with O...

Comparison with Our Needs: We can further test our performance by juxtaposing it with our requirements. Admittedly, it is very difficult to determine 'needed' rate of growth w

Marginal utility theory, discuss whether marginal utility is a realistic pi...

discuss whether marginal utility is a realistic piece of economy analysis in a consumer demand

Good governance to ensure implementation of economic policy, GOOD GOVERNAN...

GOOD GOVERNANCE TO ENSURE IMPLEMENTATION OF ECONOMIC POLICY:  Government is very sensitive to the expectation of the people and sincere efforts in this direction have already

Cost, define cost its types with curves

define cost its types with curves

Explain the term laissez-faire, Explain the term Laissez-Faire The term...

Explain the term Laissez-Faire The term "laissez-faire" is used to explain an economic system where the government intervene as little as possible and leave the private sector

Cost in the long run, Cost in the Long Run Cost minimization with the V...

Cost in the Long Run Cost minimization with the Varying Output Levels -A firm's expansion path shows minimum cost combinations of labor and capital at each level of output.

PERFECT COMPETITION and THE SUPPLY CURVE & MONOPOLY, Joe Brown’s dairy oper...

Joe Brown’s dairy operates in a perfectly competitive marketplace. Joe’s machinery costs $500 per day and is the only fixed input. His variable costs are comprised of the wages pai

International economics question 1, Steel and aluminum production Steel Can...

Steel and aluminum production Steel Canada 500, France 1200 Aluminum Canada 1500, France 800 The maximum amount of steel or aluminum that Canada and France can produce if they full

S block elements , #question.what is the periodc clasification?.

#question.what is the periodc clasification?.

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd