MC determines the shape of both TC and TVC curves. explain how?​

Answers 1

Answer:

MC= ΔTC/Δ Q (where ΔTC =change in total output, Δ Q =change in output) After sale starts increasing MC decreases initially and thus TVC is U shaped and TC is also U shaped but as it includes TFC being constant , it is slightly higher than TVC. ... Thus MC determines the shape of both TC and TVC curve.

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