In Economics, why does the total cost start above the variable cost on a graph?

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

2007-12-04 08:30:18 · 2 answers · asked by Anonymous in Social Science ➔ Economics

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

2007-12-04 08:35:28 · answer #1 · answered by NC 7 · 3⤊ 0⤋

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2007-12-04 11:00:50 · answer #2 · answered by xXxEpic VictoryxXx 4 · 0⤊ 1⤋