TC curve ........

Economics- Phase (I & II) Business Cycles

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TC curve

Starts from origin

Does not start from origin

Is parallel to Y-axis

None of the above

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Explanation:

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.