In the graph, the TC curve and the TVC curve TFC is a horizontal line at ₹60. TVC starts at 0 and rises: 30, 50, 66, 80, 100, 132, 182 for 1 to 7 units. TC starts at ₹60 and runs ₹60 above TVC at every output, reaching ₹242 at 7 units.

In the graph, the TC curve and the TVC curve

Question 7

MediumOriginal question

In the graph, the TC curve and the TVC curve

TFC is a horizontal line at ₹60. TVC starts at 0 and rises: 30, 50, 66, 80, 100, 132, 182 for 1 to 7 units. TC starts at ₹60 and runs ₹60 above TVC at every output, reaching ₹242 at 7 units.

meet at 7 units of outputCorrect answerYour answermove further apart as output risesCorrect answerYour answerare the same shape, with TC always ₹60 above TVCCorrect answerYour answerare both horizontalCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer C

Correct answer: C

TC = TVC + TFC, and TFC is the same ₹60 at every output.
So the vertical gap between them never changes: the curves are parallel.

Concept: TC and TVC
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsFixed and variable cost

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Ten questions from Cost Curves, at your own pace.

Practise this chapter →

Ten questions from Cost Curves, at your own pace.

In the graph, the TC curve and the TVC curve

Question 7

Explanation