Question

Why are TC and TVC curves parallel to each other?

Answer 1

• TC (Total Cost) and TVC (Total Variable Cost) curves are parallel to each other because Total Cost (TC) is the sum of Total Fixed Cost (TFC) and Total Variable Cost (TVC).
  TC = TFC + TVC
• The gap (vertical distance) between the TC and TVC curves stays constant throughout since TFC is constant across all output levels.
• This constant vertical distance makes the TC and TVC curves run parallel to each other.