Q19 of 20 Page 3

The two inversely S-shaped short run cost curves are parallel to each other and maintain a constant distance of 50. Which cost is indicated by 50? Also identify the two inversely S-shaped short run curves.

The two inversely S-shaped short run costs curves are TC and TVC. They both maintain a distance of 50 because here 50 refers to the TFC that the firm incurs in the short run. Since these costs are fixed by no chance would the TC and TVC meet because TC is the sum of TFC and TVC.


Source: NCERT


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