Why the Marginal Cost curve intersects the Average Cost curves at their Minimum
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- Опубликовано: 19 апр 2019
- Hi Everyone! In this video I discuss why the marginal cost curve intersects the average cost curves at their minimum. This is a really important relationship for our perfectly competitive market models in particular!
I hope that the video helps! Please like and subscribe, and have a look at my channel to see more videos on introductory microeconomics.
this wa how really my professor explained to us. I forgot the concept for a minute, but your explanation clearly reminded me of the concept. And I am surprised how easy this concept is when we think about the real-life example (grades), THank you!
Glad it helped! It's a really useful concept in economics and grades is a common example because students often do this sort of thinking about their grades. Thanks for the comment, good luck with your study! :)
So incredibly helpful for my midterm studies! I really liked how you incorporated a familiar example based on real life grades! Thank you!! :)
Yay ❤️❤️good luck with your midterm!!! Hopefully your average goes up 🥳
@@econhelp_official Thank you! I just took it this morning and I think it went pretty well!! And I see what you did there haha! 😉😁
such a great content, thank you!
Welcome!
Thanks 🙏 for the lovely comment ❤️❤️
Thank you, thank you, thank you!!!
You are so welcome! thanks for the comment!
u just saved me 🎉thanks a lot ❤️🤠
thank you so much this saved my life
I'm so glad! Thanks for the comment Shumeng, Good luck with your study!!
This video helped me a lot, thank you econhelp
I'm so glad! Good luck with your studies!
thanx for making such content
It's my pleasure! Thanks for the comment!!
Great video, thanks a lot! how do you know at what points to graph the AVC curve ?
good question! It depends on the problem. If you are given a specific equation then you can draw it quite precisely. For instance if tc=128+3q^2+2q then AVC=3q+2 which is a linear function with vertical axis intercept 2 and slope 3. In these cases checking for axis intercepts and for any slope coefficient is a good place to start. Of course this is not the usual shape of the Avc which is most often represented as being u-shaped. In these cases we can i. identify the minimum point which will be the place AVC intersects MC and ii. make sure it's always drawn below the Atc since atc=avc +afc. From my experience that's about it. I haven't ever taught at a place which required more. We can motivate the shape with reference to the mc curve in particular. I have a video that i think might help here: ruclips.net/video/OSaLDDQk0OE/видео.html I hope that helps?
Best explanation 😊
So glad to help! ❤️ thanks for the comments!!
Thanks for this
Any time! Thanks for the comment!
u are the best!!!!
You are! xx
Pls make a video on production cost in long run too
Working on it! Thanks for the comment and the sub!
thank you
You’re welcome welcome 🙏 thank you for the comment 😀
Thanks 😊
You’re welcome! Thanks for the comment ❤️
Firm shut down point is minimum point of average variable cost???
Hi Rini Chakraborty. You are correct! The firm short-run shut-down point is at the minimum of AVC. In the long run firms will make 0 profit so P = ATC. Hope that helps and good luck!
@@econhelp_official can i ask one more question??
If demand curve is downward sloping and supply curve is upward sloping then the equilibrium is stable in both walrasian and Marshallian analysis right???
w video
if a firm's marginal cost intersects the average variable cost then what happens?
It will intersect avc at its minimum for the same reasons mentioned here
@@econhelp_official will the marginal cost be upward or downward
It will be sloped upwards, it will come right through the minimum. Does that help? This video might help I can’t remember if I discuss avc specifically but I discuss the shape of the curves Understanding Firm Short Run Cost Curves
ruclips.net/video/OSaLDDQk0OE/видео.html
@@econhelp_official thanks for being a life saver! It really helped me to grasp the concept!
@@mutaammilmahmudalamin aw that's so nice, no worries, thanks so much for watching my videos!