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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.
More Economics Videos at: sites.google.c...
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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

  • @notyourechochamber3137
    @notyourechochamber31377 жыл бұрын

    My only question is why KZread explains economics better then professors do

  • @johnnyumamanikanta98

    @johnnyumamanikanta98

    3 жыл бұрын

    because youtube pays the more to creators

  • @liamhoward2208

    @liamhoward2208

    2 жыл бұрын

    Because professors outsource their service to KZread and still get paid.

  • @economicurtis
    @economicurtis11 жыл бұрын

    sorry about that. i've since upgraded recording devices, but I haven't replaced this video. will do eventually! thanks for the feedback.

  • @jamesdongdong88
    @jamesdongdong8811 жыл бұрын

    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!

  • @phillipanthonymeeks1997
    @phillipanthonymeeks19974 жыл бұрын

    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!!

  • @gorrtube
    @gorrtube10 жыл бұрын

    Very informative. You saved my ass in my national economy class. If you ever visit Finland, remind me to buy you a beer.

  • @sakuragi1046
    @sakuragi10465 жыл бұрын

    THANK YOU SO MUCH!!! Totally needed this, got an exam in 3 hours lol

  • @jthomasstthomas
    @jthomasstthomas8 жыл бұрын

    I learned more in your 10 minute video than I did in my 5 hour night class. Thanks so much!

  • @emilyoodit6962
    @emilyoodit69628 жыл бұрын

    This was so great! Thanks so much! I Actually understand this stuff now! Great Job!! :D

  • @lindagilasevitch8067
    @lindagilasevitch806711 жыл бұрын

    Excellent..this is the most I have understood so far. THANKS very much!! Keep the videos coming.

  • @proverb310
    @proverb3107 жыл бұрын

    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

  • @JenileGonzales
    @JenileGonzales11 жыл бұрын

    Excellent Job ! You have a very soothing voice, keep it up

  • @pranavgurav2400
    @pranavgurav2400 Жыл бұрын

    WOW! Thanks for explaining so nicely.

  • @cljonah8864
    @cljonah886411 жыл бұрын

    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

  • @MagicAndy782
    @MagicAndy78211 жыл бұрын

    Thank you, helping me pass my Exams :D

  • @economicurtis
    @economicurtis11 жыл бұрын

    Thank goodness. At least one of us is making good progress in our schooling then!

  • @aqibparvez1450
    @aqibparvez14509 жыл бұрын

    Thanks... u make my mind Crystal clear about this topic... great job.. :D

  • @XIIICross
    @XIIICross11 жыл бұрын

    Thank you, you helped me with this tutorial. God Bless You :D

  • @economicurtis
    @economicurtis11 жыл бұрын

    So very nice of you to say!!!

  • @isabelgarcia891
    @isabelgarcia8914 жыл бұрын

    Thank you so much I was looking for a video like this , it helped a lot

  • @dang_khoa093
    @dang_khoa09311 жыл бұрын

    Thanks for the video! Do you have video about how to calculate AFC, AVC, AC, MC, TC on a short run cost function?

  • @economicurtis
    @economicurtis11 жыл бұрын

    wonderful. happy to help!

  • @sriramjayaram7484
    @sriramjayaram74844 жыл бұрын

    Excellent sir from India

  • @Dreamtakerlol
    @Dreamtakerlol9 жыл бұрын

    Great video. Thank you so much for the breakdown of all information.

  • @economicurtis

    @economicurtis

    9 жыл бұрын

    Troy Wisdom You bet!

  • @leiyangmanceras3037
    @leiyangmanceras3037 Жыл бұрын

    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! ☺️😇

  • @gamingwars-thelocalpros2506
    @gamingwars-thelocalpros25069 жыл бұрын

    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.

  • @economicurtis
    @economicurtis11 жыл бұрын

    Thanks!

  • @firstnamelastname5616
    @firstnamelastname56169 жыл бұрын

    nice! Needed that for my finals, thank you.

  • @_akalman
    @_akalman4 жыл бұрын

    This was very helpful thank you.

  • @swetha6808
    @swetha68085 жыл бұрын

    If anyone know the answer for, if total cost =10+Q³,find out Ac,AVC,TFC,AFC when Q=5

  • @SalaarRabbani2001
    @SalaarRabbani20017 жыл бұрын

    Fantastic video my man.

  • @economicurtis
    @economicurtis11 жыл бұрын

    you're welcome, thank you!

  • @dandrekersey9680
    @dandrekersey96804 жыл бұрын

    Life saver!!!!

  • @heathersteel-wiesenberger4389
    @heathersteel-wiesenberger43896 жыл бұрын

    Thank you for this video!

  • @kedibonelephalala7115
    @kedibonelephalala71157 жыл бұрын

    THANKS IT HELPED A LOT

  • @economicurtis
    @economicurtis11 жыл бұрын

    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.

  • @deneilynsiva1141
    @deneilynsiva11412 жыл бұрын

    Thank you so much

  • @priyankakapur96
    @priyankakapur9611 жыл бұрын

    thank you so much! I understand so much! :) you are awesome

  • @abdikanimahamed797
    @abdikanimahamed7975 жыл бұрын

    Thanks

  • @BJWC2010
    @BJWC20108 жыл бұрын

    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?

  • @Gavinnations
    @Gavinnations11 жыл бұрын

    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.

  • @chrispwnisher274
    @chrispwnisher2748 жыл бұрын

    Just turn on subtitles/closed captions if you can't hear it clearly.

  • @sachindrachoudhary8222
    @sachindrachoudhary82229 жыл бұрын

    nice! got i needed... thank u so much.

  • @christophergerard3310
    @christophergerard33109 жыл бұрын

    very helpful..thank you

  • @AngeliqueW1
    @AngeliqueW15 жыл бұрын

    Thank you!

  • @economicurtis
    @economicurtis11 жыл бұрын

    most excellent

  • @WitlessMean
    @WitlessMean8 жыл бұрын

    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.

  • @lauraduran3446
    @lauraduran34466 жыл бұрын

    AMAZING!!!!!!!!!!!

  • @sushineeful
    @sushineeful10 жыл бұрын

    thanks a lot!

  • @Survivor2060
    @Survivor206011 жыл бұрын

    Great, Thx.

  • @flyboyklk
    @flyboyklk11 жыл бұрын

    excellent

  • @wreckemtech165
    @wreckemtech1657 жыл бұрын

    How can I calculate fixed cost and variable cost if I only have quantity and total cost???

  • @coconut8117
    @coconut81177 жыл бұрын

    why would you do that to the marginal cost on the graph. it still doesnt make sense to me

  • @ro7357
    @ro73577 жыл бұрын

    How do you find total cost in monopoly without having fixed cost and variable cost?

  • @Tsomimotso
    @Tsomimotso10 жыл бұрын

    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

  • @alisondublin7351
    @alisondublin73517 ай бұрын

    god bless you

  • @sadfgsadfsa
    @sadfgsadfsa9 жыл бұрын

    how to calculate TC if you only have FC not VC

  • @Ben_the_Drummer

    @Ben_the_Drummer

    8 жыл бұрын

    TC

  • @sweatydood5118
    @sweatydood51186 жыл бұрын

    I freaking love you. I love you too much

  • @vandana4096
    @vandana40965 жыл бұрын

    Fixed cost can be zero?

  • @econprofaj

    @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.

  • @danaelona4081
    @danaelona40815 жыл бұрын

    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!

  • @kashwalton-tewes4624
    @kashwalton-tewes46247 жыл бұрын

    Speak up lol

  • @yuezhao756
    @yuezhao75610 жыл бұрын

    Thank you !