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TC curve

A. Starts from origin

B. Does not start from origin

C. Is parallel to Y-axis

D. None of the above

Answer: Option B

Solution(By Examveda Team)

TC curve does not start from origin. The shape of the total cost curve is based on short-run production returns, especially the law of diminishing marginal returns. Another observation is that the total cost curve does not go through the origin, but rather begins at a positive value on the vertical axis. This vertical intercept indicates fixed cost.

This Question Belongs to Commerce >> Economics

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Which among the following statement is INCORRECT?

A. On a linear demand curve, all the five forms of elasticity can be depicted

B. If two demand curves are linear and intersecting each other, then, coefficient of elasticity would be same on different demand curves at the point of intersection.

C. If two demand curves are linear and parallel to each other, then, at a particular price, the coefficient of elasticity would be different on different demand curves.

D. The price elasticity of demand is expressed in terms of relaive not absolute changes in Price and Quantity demanded.