Question

Identify the two cost curves which start from the same point on the Y-axis.

Options

• TVC and TFC

• TFC and TVC

• TFC and TC

• TFC and AFC

Answer 1

TFC and TC

Explanation:

The total fixed cost and total cost are two cost curves that start at the same location on the Y-axis. TFC and TVC are added together to form TC. Because TVC is 0 at the zero level of output, it begins at the origin. TC = TFC and starts from the same place on the y-axis at the zero level of output.