How to Calculate Marginal Cost, Average Total Cost, Average Variable Cost, and Average Fixed Cost
Given info about fixed and variable costs, and firm productivity:
- We find how to calculate marginal cost.
- We find how to calculate average total cost.
- We find how to calculate average variable cost.
- We find how to calculate average fixed cost.
- We find how to calculate total fixed cost.
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Mark and Jeff operate a small company that produces souvenir footballs. Their fixed cost is $2,000 per month. They can hire workers for $1,000 per worker per month. Their monthly production function for footballs is as given in the accompanying table.
[ see table in video ]
a. For each quantity of labor, calculate average variable cost (AVC), average fixed cost (AFC), average total cost (ATC), marginal cost (MC).
b. On one diagram, draw the AVC, ATC, and MC curves.
c. At what level of output is Mark and Jeff's average total cost minimized?
from Krugman Wells -- Microeconomics 2nd Ed. -- Chapter 12 (Behind the Supply Curve: Inputs & Costs), Question 10
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Пікірлер: 69
My only question is why KZread explains economics better then professors do
@johnnyumamanikanta98
3 жыл бұрын
because youtube pays the more to creators
@liamhoward2208
2 жыл бұрын
Because professors outsource their service to KZread and still get paid.
sorry about that. i've since upgraded recording devices, but I haven't replaced this video. will do eventually! thanks for the feedback.
Man, my lecture spent 4 hours in the class and I didn't get it, but only 15 minutes video clip made me clearly understand everything. You are rock!
Dude...I love this topic but I've been so frustrated with not understanding this stuff from the book. You whipped out the Excel sheet and I got it instantly. You just got me to pass this course - you're the man for doing this!!
Very informative. You saved my ass in my national economy class. If you ever visit Finland, remind me to buy you a beer.
THANK YOU SO MUCH!!! Totally needed this, got an exam in 3 hours lol
I learned more in your 10 minute video than I did in my 5 hour night class. Thanks so much!
This was so great! Thanks so much! I Actually understand this stuff now! Great Job!! :D
Excellent..this is the most I have understood so far. THANKS very much!! Keep the videos coming.
Thank you so much Economicurtis, you have saved me alot of heartache. My ECON text book shows the examples how to calculate the different costs but it is not explained in detail like you have done in this video. Awesome
Excellent Job ! You have a very soothing voice, keep it up
WOW! Thanks for explaining so nicely.
i have not attend any lecture.....because there are allot of destraction (beautiful Girls)......but i pass my test, just by watching these video......thanks ....you the best
Thank you, helping me pass my Exams :D
Thank goodness. At least one of us is making good progress in our schooling then!
Thanks... u make my mind Crystal clear about this topic... great job.. :D
Thank you, you helped me with this tutorial. God Bless You :D
So very nice of you to say!!!
Thank you so much I was looking for a video like this , it helped a lot
Thanks for the video! Do you have video about how to calculate AFC, AVC, AC, MC, TC on a short run cost function?
wonderful. happy to help!
Excellent sir from India
Great video. Thank you so much for the breakdown of all information.
@economicurtis
9 жыл бұрын
Troy Wisdom You bet!
Thanks for this helpful videos. :) I hope there is a video also in the market forces of supply and demand and computation in Approaches to GNP/GDP measurements. Thank You so much! ☺️😇
Hi, this may be a different comment than the usual you get - but I'm a boy and new to youtube, I needed to know what equipment do you use for your videos - audio specifically - its very crystal clear and has no noise. If you could help me out with this please.
Thanks!
nice! Needed that for my finals, thank you.
This was very helpful thank you.
If anyone know the answer for, if total cost =10+Q³,find out Ac,AVC,TFC,AFC when Q=5
Fantastic video my man.
you're welcome, thank you!
Life saver!!!!
Thank you for this video!
THANKS IT HELPED A LOT
You find them pretty, and so you DON'T attend lecture? Not sure you're maximizing your utility there! Glad to help with the exam.
Thank you so much
thank you so much! I understand so much! :) you are awesome
Thanks
With my volume at 100 I can barely hear you. Looks like it would help me out a lot but I can't hear it?
Can you tell me how you create the diagram in excel? I understand how you obtained the results but can't figure out how to plot it accurately.
Just turn on subtitles/closed captions if you can't hear it clearly.
nice! got i needed... thank u so much.
very helpful..thank you
Thank you!
most excellent
what if you don't have the 1000 there? I'm doing a problem where there's no umber up there. I just have the workers, total output, and total cost.
AMAZING!!!!!!!!!!!
thanks a lot!
Great, Thx.
excellent
How can I calculate fixed cost and variable cost if I only have quantity and total cost???
why would you do that to the marginal cost on the graph. it still doesnt make sense to me
How do you find total cost in monopoly without having fixed cost and variable cost?
P - 100 Q - 1890 TR - 189,000 AFC - unknown FC - unknown AVC - unknown VC - unknown ATC - 106 TC - 200,340 i have to find unknown fields. i'm so confused. help me pls
god bless you
how to calculate TC if you only have FC not VC
@Ben_the_Drummer
8 жыл бұрын
TC
I freaking love you. I love you too much
Fixed cost can be zero?
@econprofaj
4 жыл бұрын
No, if you look at Average Fixed Cost, he has 2,000 in the numerator, so fixed costs are always 2,000. The reason when there's no average fixed cost when quantity is zero is because it is mathematically impossible to divide by zero.
Lop could i have your email bc my question is long like this and i could send a pic of it so you can help me?? Please! My problem is due by tonight!
Speak up lol
Thank you !