In Economics, Why Does The Total Cost Start Above The Variable Cost On A Graph?

Posted by Stephen Cline on January 25th, 2010

I’ve started studying Economics not long ago. Why is the total cost above the variable cost?

Tags: , , , , , ,

2 Responses to “In Economics, Why Does The Total Cost Start Above The Variable Cost On A Graph?”

  1. Because of fixed costs. TC = FC + VC, so graphically, the vertical distance between VC and TC is the FC.

  2. ……………

Leave a Reply

Powered by Yahoo! Answers