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Economics
In the first video sir said the graph of variable cost is a straight line starting from origin but in the second video the graph of TVC is a like a curve starting from origin EXPLAIN Another doubt is TC =TVC+TFC SEE this Image and clarify my doubt. If that portion is not covered how can total variable cost be covered
Answers (5)
The shape of the total variable cost curve reflects increasing marginal returns at small quantities of output and decreasing marginal returns at large quantities. TVC curve starts from the origin indicating that when output is zero, variable cost is also zero. TVC is an inversely S-shaped curve due to the Law of Variable Proportions.
Lavanya Chitturi
The shape of the total variable cost curve reflects increasing marginal returns at small quantities of output and decreasing marginal returns at large quantities. TVC curve starts from the origin indicating that when output is zero, variable cost is also zero. TVC is an inversely S-shaped curve due to the Law of Variable Proportions.
But that s shaped curve is shown. As a straight line in first video
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