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Average Variable Costs

Microeconomics Practice Problem - Calculating and Graphing the Costs of Production

This video shows how to calculate various forms of cost (total fixed cost, total variable cost, average variable cost, average total cost, average fixed cost, and ...

User Comments

slom saeed commented on 26 Dec 2014

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Jordicutie iz tha best commented on 27 Apr 2015

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Economics: Average Variable Cost, Product of Labor

//www.mindbites.com/lesson/7700 for full video. For a full video Economics course, you'll want to click through to ...

Cost Function - Solving for Total, Fixed, and Variable costs - Sample Problem without calculus

Quadratic cost function, solving for fixed costs, variable costs, and total costs.

User Comments

Melissa Salyer commented on 15 Aug 2014

Here's my attempt to recreate the Cost Function for the extra credit homework assignment. It can be found at //youtu.be/Zkp3xQnG5AY

Crystal Fox commented on 02 Dec 2014

Thank you for the help

Nam Chuong Pham commented on 10 Nov 2015

Thanks a lot :D

The OG Eggshooter commented on 13 Nov 2014

fun

Production Cost, Average Variable Cost, Average Total Cost, Marginal Cost Economics

Tutorial on how cost curves change when wages change.

User Comments

algebrafun commented on 28 Apr 2010

Hummm..... think of it from a marginal cost perspective. How much does it cost to do one more of your service. Let say your service is writing papers for another student name David and it is a fixed fee of $150 per month. David sees the marginal cost as zero, but you don't. Your marginal cost is time you have to give up to write the paper. Your variable cost, even if you don't charge for it, is your time you spend writing the paper.

Economicsfun commented on 05 Jun 2011

@TheIslandGIL How can a firm reduce costs in the short run? Often economist consider costs in the short run fixed and they can't be changed (reduced). A producer may be able to shift between Capital (K) and Labor (L) to produce the same level of output but reduce total cost. This means they stay on the same production isoquant curve. The producer should choose the combination of inputs (capital and labor) with the lowest cost.

Economicsfun commented on 07 Jun 2011

@TheIslandGIL Well in the long run the producer is able to enter into new contracts with lower prices. The producer could also hire labor that is less expensive (or out source it to some other country). The idea is a producer can enter into new contracts at lower prices. They can also shop and look for the best prices. Imagine when you have no time or rushed to buy something you have to pay the premium prices.

mariapyhugom commented on 28 Apr 2010

Hello professor, I have a questionHow do I get an equilibrium point? I offer a service in my business. I charge $150 monthly? How do I get the equilibrium point if I do no have variable cost? Or how I get the variable cost from the $150 if it is a service not a tangible product? I have all non variable cost such as phone, rent.. and so on. Thank you in advance!

Economicsfun commented on 17 May 2011

It depends on the product. Some products have high fixed costs like making cars and computers and low variable costs. In other words there are a lot of set up costs. Some products like music have low set up costs and low distribution costs, hence low production costs. If you tell me more about your senior project, then I will try to help you out.

ashirocksful commented on 03 Apr 2012

1)Can I know if the price of fop increase or decrease will the gap between the original ATC and new ATC change or remain constant? 2)When there is lump sum subsidy, will the gap btw the original ATC and new ATC change? Pls demonstrate these. Thanks!

Economicsfun commented on 13 Jul 2012

Dang! This is one of my early attempts and loads. I have an entire playlist on "Average Product, Total Product, Marginal Product. I hope these videos help you better. Just go to the "economicsfun" channel and you will see the playlist.

Economicsfun commented on 05 Apr 2012

Now that I think about it. From a producer perspective an increase in taxes would be seen the same as an "increase in wages." It wold not matter if the increase went to the employee or to the government.

Economicsfun commented on 04 Apr 2012

The tax would impact variable cost and in turn increase average variable cost. The tax would shift all the curves up.

Raymundo Flores commented on 16 May 2011

Hey I got a question that relates to my senior project. How does production cost of a product change?

Economicsfun commented on 05 Apr 2012

The gap should become less because all the cost curves should move up vertically.

Huijia Shu commented on 19 Feb 2013

Professor, what would happen to AC, AVC,MC and profits when the fixed input falls?

ashirocksful commented on 03 Apr 2012

In addition when there is a tax on wages, the gap remains constant or change?

ashirocksful commented on 04 Apr 2012

How are the shifts demonstrated? Is it a vertical shift?

Marginal Cost and Average Total Cost- Micro 3.4

Mr. Clifford explains why MC decreases and then increases and why the MC hits ATC at the minimum point of the ATC curve. Very exciting stuff!

User Comments

Katie Schnepf commented on 15 Dec 2015

Have never seen a comment section this motivational

ACDCLeadership commented on 16 Dec 2015

+Katie Schnepf Weird huh? Usually it is a bunch of jerks, but I guess no jerks take economics :)

Joanita Gabriella-Renae commented on 09 Dec 2015

wish you were my economics lecturer as mine fails to explain economics in an understandable way!

ACDCLeadership commented on 10 Dec 2015

+Joanita Gabriella-Renae That sucks. I'm sorry. I'm glad that my videos are helping

Gorilla511 commented on 07 Dec 2015

This was exactly what I needed. You sexy motherfucker. Thank you

ACDCLeadership commented on 07 Dec 2015

+Gorilla511 Thank you?

Dev Sareen commented on 02 Dec 2015

youre the reason im passing econ

ACDCLeadership commented on 02 Dec 2015

+Dev Sareen Your're the reason I have a YouTube channel:)

Dona Wijemanne commented on 25 Nov 2015

why are marginal cost lower than average costs?

Akinsola Agbebi commented on 27 Nov 2015

+ACDCLeadership i wonder whats your opinion on trump. in terms of the economy, do you think as a business man he'll run the economy well

ACDCLeadership commented on 27 Nov 2015

I'm pleased to be your tutor. Please tell your friends.

Akinsola Agbebi commented on 27 Nov 2015

+ACDCLeadership thanks for your videos, this great work. who needs a tutor when we've got you

Dona Wijemanne commented on 25 Nov 2015

and why does it initially fall? why doesn't initially rise?

ACDCLeadership commented on 25 Nov 2015

The price may or may not change, but as you produce more the additional COST initially falls.

Dona Wijemanne commented on 25 Nov 2015

wouldn't the additional cost of any units be the same as the original cost to make a product? so how would the marginal cost change? wouldn't it be the same throughout as the price?

ACDCLeadership commented on 25 Nov 2015

Great question. The marginal cost falls at first because workers specialize and then it starts going up because of diminishing returns. This video will help: https://www.youtube.com/watch?v=xLSRMt-wWAM

Dona Wijemanne commented on 25 Nov 2015

why does it start lower? why doesn't start at the same level?

ACDCLeadership commented on 25 Nov 2015

+Dona Wijemanne The marginal cost is not lower than the average cost. See 2:47. It starts lower, but as you produce more the marginal cost increases. The result is that the average costs falls than rises. I explain that at the end. Let me know if you need more help.