That was awesome! Though I was a bit confused as you used the general formula for the Total or Average figure of something while in our module guide it was AC = TC / TP instead of Quantity.
eventually, the marginal cost will increase so much that there will then be an increase in average costs. for ex: a very important aspect of figure 17.6 is that the short-run marginal cost curve (SMC) cuts both SAVC and SATC at their minimum points. this is always the case. if you think about this for a moment, you will realise that it makes good sense. if you are adding on something that is greater than the average, the average must always increase. for a firm, when the marginal cost of producing an additional unit of a good is higher than the average cost of doing so, the average cost must rise. if the marginal cost is the same as the average cost, then average cost will not change. an example can show how general this rule is. suppose that a team newly promoted to the country’s top league brings in a new striker, whose wage far exceeds that of existing players. What happens to the average wage? of course it must increase, as the marginal wage of the new player is higher than the previous average wage. this is quite simply an arithmetic property of the average and the marginal, and always holds true.
I have really enjoyed and understood the Marginal revenue, total revenue curves but i do need another help on total utility and marginal utility curves please Am from uganda
Can any one tell me that the law of variable proportion and law of diminishing marginal product same. And what are different stages of law of diminishing marginal returns
Because marginal product is negative, you would be dividing by a negative number to get the marginal cost. This would give you a negative marginal cost which would not be accurate as this would imply you are saving money which is not the case. In other words the marginal cost is the extra cost of producing one more unit and as you physically are not producing an extra unit (you are producing 3 less) there is no marginal cost of producing extra units at this output because you are not able to produce extra units in the first place.
i know its 3 years too late to reply but since dividing anything by 0 results in 0. he has put down the “-” to show that the number is 0 or non existent
this video is really amazing. it makes everything much easier and clearer than a 1-hour lecture from uni
it'd be helpful to also explain why MC passes through the min point of AC.
how do you know exactly what i am studying right now? Must be the same powers that enable you to do this all in one take
The KING still helping me out at uni
thank you for sharing this video it real helped me for tomorrow class
omg when he said MC and AC were just MP and AP flipped 🤯🤯
Thanks man... u did a great job...! Looking forward for many such. Regards!
That is the best explanation i could find
Excellent presentation
no cap dis guy a life saver
I stumbled across this video having studied economics years ago. Very well explained.
That was awesome! Though I was a bit confused as you used the general formula for the Total or Average figure of something while in our module guide it was AC = TC / TP instead of Quantity.
Great video mate thanks a lot really helping me out with my A levels 👍🏼
How was it
howd it go
@@oliverthorne9060 E
@@tpainterxfirst guy I’ve seen reply, but massive F
Thanks Dal! You're Legend!
Could you please explain more about how AC is shaped based on the law of diminishing returns in words?
AC starts increasing after its minimum point showing of law of diminishing returns
You saved a life. Thank you so, so much.
thank you, your videos saved my presentation.
Ur voice resembles to that of former cricketer Michael Atherton ❤
Still dont get what happens when AC=MC, like why is AC intersecting MC when MC increases
eventually, the marginal cost will increase so much that there will then be an increase in average costs.
for ex: a very important aspect of figure 17.6 is that the
short-run marginal cost curve (SMC) cuts both SAVC
and SATC at their minimum points.
this is always the
case.
if you think about this for a moment, you will
realise that it makes good sense.
if you are adding
on something that is greater than the average, the average must always increase.
for a firm, when the
marginal cost of producing an additional unit of a
good is higher than the average cost of doing so, the average cost must rise.
if the marginal cost is the
same as the average cost, then average cost will not
change.
an example can show how general this rule is.
suppose that a team newly promoted to the country’s
top league brings in a new striker, whose wage far exceeds that of existing players. What happens to
the average wage?
of course it must increase, as
the marginal wage of the new player is higher than
the previous average wage.
this is quite simply an
arithmetic property of the average and the marginal,
and always holds true.
Thank you
I have really enjoyed and understood the Marginal revenue, total revenue curves but i do need another help on total utility and marginal utility curves please
Am from uganda
Thank you very much for this helpful video
thankyou again Dal!
Thanks sir
Nice video👌🏽
Loved the video🎉🎉🎉
You are the best 😊
Bros fully carrying me through a level economics
It feels like this man has achieved nirvana.
What happens at that point where MC and AC intersect?
Then soon it will be time for AC curve to rise 😁
beautiful video! kudos!
This is so helpful!
Why is it not possible to equalize the marginal and average return?
What about the intersection of mc and ac? What does it mean?
Superb
how did he calculate marginal cost? i didnt understnd
He calculated by using changing in total cost/change in quantity,for examplechange in total cost=10/ quantity (marginal product)4 we will get 2.5
I love you have my children
Can any one tell me that the law of variable proportion and law of diminishing marginal product same.
And what are different stages of law of diminishing marginal returns
No big reason, just 2 different names for the same concept: they are used interchangeably.
why is the last value for marginal costs given a "-", does that mean that it is non-existent?
Because marginal product is negative, you would be dividing by a negative number to get the marginal cost. This would give you a negative marginal cost which would not be accurate as this would imply you are saving money which is not the case. In other words the marginal cost is the extra cost of producing one more unit and as you physically are not producing an extra unit (you are producing 3 less) there is no marginal cost of producing extra units at this output because you are not able to produce extra units in the first place.
i know its 3 years too late to reply but since dividing anything by 0 results in 0. he has put down the “-” to show that the number is 0 or non existent
please i want long run AC and MC
what do u mean
i love you
👍🏽
Make it more easy for layman.
Heyy
Can start a whatsapp channel ?