Chapter 13: The Cost of Production

Рет қаралды 91,139

Күн бұрын

The objective of a firm: to maximize profit 1:14
Explicit vs implicit costs 2:59
Investments are not costs 7:24
Economic profit vs accounting profit 12:14
The production function 15:00
Marginal product 23:19
The law of diminishing marginal product 25:18
From the production function to the total cost curve 32:33
Fixed cost 43:34
Variable cost 45:03
Average fixed cost 47:04
Average variable cost 48:29
Average total cost 49:39
Marginal cost 50:57
The efficient scale of the firm 59:59
The relationship between marginal cost and average cost 1:00:50
Typical cost curves 1:03:09
The difference between the short-run and the long-run 1:06:54
Long-run average total cost 1:08:40
Economies and diseconomies of scale 1:15:37

Пікірлер: 100

@udontknowme154 3 ай бұрын

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@oddandmarvelous 26 күн бұрын

ur literally such a great teacher and im literally wishing the best for you the rest of my life

@DrAzevedoEcon 24 күн бұрын

Thank you! I appreciate that.

@dde2989 3 жыл бұрын

Great! Everything is clearer now. Thank you for this beautiful lesson

@bunni4684 2 жыл бұрын

it's never been this easy to learn econ. thank you sm!

@kolapo8288 10 ай бұрын

This is AMAZING. Production and Cos Functions are explained with ease. Thank you.

@hazemnasr9621 2 жыл бұрын

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@mikkyyy793 2 жыл бұрын

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@NhuNguyen-rh7bp 2 жыл бұрын

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@DrAzevedoEcon 2 жыл бұрын

Thanks! I'm happy to hear that it has helped you out!

@wavesofenglish777 3 жыл бұрын

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@mahadiullah878 4 жыл бұрын

Exquisite explanation!

@naf6933 2 жыл бұрын

Your content is really excellent. Please, make more Videos on other topics like macroeconomics

@deanzebari8274 Жыл бұрын

I couldn't thank you enough for giving a lecture video on this chapter! This helped me so much and I understood certain material much better after watching this video than my professor giving a lecture in class.

@DrAzevedoEcon Жыл бұрын

I'm glad the video helped clarify things!

@shradhachauhan8157 3 жыл бұрын

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@mohinigupta7623 2 жыл бұрын

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@jameswu9715 2 жыл бұрын

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@charliejennifer3874 Жыл бұрын

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@Marco-Mandy 4 ай бұрын

Amazing Explanation.

@udontknowme154 3 ай бұрын

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@user-qv7vq2iw9v 3 жыл бұрын

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@summerjho2781 Жыл бұрын

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@DrAzevedoEcon Жыл бұрын

You’re welcome! I’m glad the video was helpful!

@cop4770 2 жыл бұрын

Best teacher!

@irenewang839 2 жыл бұрын

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@Ujh294 Жыл бұрын

Thank you so much for the video sir 🙏 Your efforts and expertise are highly commendable.

@DrAzevedoEcon Жыл бұрын

You're welcome! Glad to help!

@anushkagupta3962 3 жыл бұрын

nicely explained

@imas8232 2 жыл бұрын

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@tanas2169 Жыл бұрын

God bless U, Man.

@madhavhans2289 2 жыл бұрын

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@interestingfacts67959 2 жыл бұрын

Very helpful

@ShadowFEB3 8 ай бұрын

Nice job sir

@nangmomotheda3884 Жыл бұрын

crystal clear lectures, thank you teacher.

@DrAzevedoEcon Жыл бұрын

Glad to help!

@fl458 7 ай бұрын

Econ would be a nightmare without your videos. Ive chosen Econ as an elective and you are saaaavvvviiinnng my life🙏🏼

@DrAzevedoEcon 6 ай бұрын

Very happy to be able to help!

@saurabhmahajan4459 Жыл бұрын

Great Lecture !💯💯

@DrAzevedoEcon Жыл бұрын

Thanks!

@mehmetciftci3163 Жыл бұрын

Your videos are really explanatory for economics students thank you for the lectures from Turkey.

@DrAzevedoEcon Жыл бұрын

You're welcome! Happy to help!

@mehmetciftci3163 Жыл бұрын

@@DrAzevedoEconI got 100 from the final exam, I got 72 before I met you, but I got 100 after watching your videos, thanks again professor

@DrAzevedoEcon Жыл бұрын

@@mehmetciftci3163 Great job!

@khairunnidahajiabdullah8030 9 ай бұрын

from Brunei being helped as well

@fahimmusaddiq5295 3 жыл бұрын

Thanks sir...

@NhuNguyen-rh7bp 2 жыл бұрын

Thank you so much.

@xuanphucnguyen1212 2 жыл бұрын

So great to see Vietnamese here

@humayra8703 2 жыл бұрын

😍😍Thank you sir

@mortazakhawari923 Жыл бұрын

thank you so much

@habibshakil3391 Жыл бұрын

You are motivating me to think like an economist,

@DrAzevedoEcon Жыл бұрын

Great! I wish everyone thought that way.

@udontknowme154 3 ай бұрын

mind blown

@mariyamshahumaa1168 5 ай бұрын

Best i have ever seen😮😮😮

@DrAzevedoEcon 5 ай бұрын

Thanks!

@jjlamorena582 2 жыл бұрын

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@sadsapxe2 4 ай бұрын

Thanks sir this videoes gives more information than my lectures

@hassanansari5515 11 ай бұрын

Incredible content Sir love from Pakistan 💛

@DrAzevedoEcon 11 ай бұрын

Thank you! Thanks for watching!

@phuongnguyenquynh744 3 жыл бұрын

thank you so muchhhh.

@sohanshrestha9466 Жыл бұрын

Why is the cost of raw materials not included in the TC(in the example)??

@sam-1810 7 ай бұрын

I was looking for resources I can use to learn Economics. I searched many times but I couldn't find a good one. Today I was so down because I couldn't understand this lesson after spending so many hours. So my mum searched for it online and decided to select this video. I'm glad of everything that happened that made me access this video ❤. Thank you for posting ❤

@DrAzevedoEcon 7 ай бұрын

I'm glad you found the videos! Good luck with your studies!

@nikhilfci Жыл бұрын

Sir , is there any reason why some chapters are missing in U TUBE?

@mikkyyy793 2 жыл бұрын

We need concepts of another ch. Too..

@island48 9 ай бұрын

Thank you 😊

@DrAzevedoEcon 9 ай бұрын

You're welcome! Thanks for watching!

@botweygyectebeahvictoria6719 Жыл бұрын

thank you so much i feel i owe you

@DrAzevedoEcon Жыл бұрын

You're welcome! You don't owe me a thing....just do your best on your exams.

@shakhawathossain1372 Жыл бұрын

Thanks a lot

@DrAzevedoEcon Жыл бұрын

You're welcome!

@brendanberry3103 6 ай бұрын

Thanks for saving my Assvedo Professor Azevedo

@DrAzevedoEcon 6 ай бұрын

Haha! Happy to help!

@Taniya47000 6 ай бұрын

Thankyou sir😊

@DrAzevedoEcon 6 ай бұрын

You're very welcome!

@MKLee369 7 ай бұрын

Dr Azevedo, thanks for your great video, but I have a question regarding cost of production when attending my lecture. My professor says that 'Technological advance may result that firm uses more capital and less labor, so fixed costs increase and variable costs decrease. ATC increases at low output levels and decreases at high output levels'. But the ATC curve is U-shaped. The ATC should decrease at low output level and increase back at high output level instead of converse. My understand is that ATC curve looks like "concave downwards" when technology improves?? I actually don't understand what my professor means. Hope you can solve my question. Thanks!

@DrAzevedoEcon 7 ай бұрын

Honestly, I'm not sure what your professor is saying either. Maybe there's a misunderstanding somewhere. Typically, we would think about a technological advance as shifting the cost curves. For example, technological progress typically makes production cheaper, so the cost curves would shift down. Firms can also freely substitute between capital and labor (in the long-run), so there's nothing wrong with saying that a firm's fixed costs could increase and variable cost could decrease. However, this is very different from describing how ATC is affected by changes in output. If your professor is saying that the ATC curve is inverted....that's not true. Fixed costs are fixed....obviously. This means that AFC has to decline as output increases (because output is in the denominator). Variable costs increase as output increases. When you produce more output, you need more inputs, which costs more. AVC can be U-shaped, but will eventually increase due to the law of diminishing marginal product. If AFC is decreasing as output increases, and AVC is eventually increasing as output increases, the ATC curve is U-shaped. In other words, these two things together rule out the possibility of an "inverted" ATC curve.

@MKLee369 7 ай бұрын

@@DrAzevedoEcon I have tried by myself to figure what is the meaning of 'ATC increases at low output level and decrease at high output level' by contructing a table of Q, FC, VC ... like what you did in the video. It turns out that compared to original ATC curve, when TFC (thus AFC) increases and (TVC thus AVC) decrease, when Q is low, the new ATC curve starts from a higher position that original ATC curve. Then the new curve decrease more rapidly than old curve (so new and old curve intersects at one point). After that point, the new ATC curve is always below the original ATC curve. I think that is the actual meaning of my professor. Though still thank you professor as you let me understand more deeply why ATC curve has to be U-shaped. My professor just teach one example of shifting cost curve, and then just said 'Figure out other possibilities by yourself and read the rest of ppt'.

@DrAzevedoEcon 7 ай бұрын

@@MKLee369 Happy to help!

@yousufmiya8159 Жыл бұрын

You are really great teacher... How can i find the lectures other chapters?

@DrAzevedoEcon Жыл бұрын

Thank you! Here's the playlist for the principles of microeconomics videos that I have available right now. I also have macro videos available as well in a separate playlist. kzfaq.info/sun/PLTjEimbqDkpBL55W6wye1jTcYePjehkT3

@elanurerdogan8586 Жыл бұрын

thank youuu

@DrAzevedoEcon Жыл бұрын

You're welcome!

@trungnhan7881 6 ай бұрын

you are my saver

@DrAzevedoEcon 6 ай бұрын

Happy to help!

@hanrong5856 3 жыл бұрын

Hello,professor!where is chapter 8?

@zanderlowell5805 5 ай бұрын

How you be doign the thang with the board??? ARe you being having writing backwards?? If so you are reall ygood at it!!! Love you, ZAndy

@DrAzevedoEcon 5 ай бұрын

Not writing backward. I'm writing on glass, and then the image is reversed so that it's readable. Happy to help!

@bbeeyangli 5 ай бұрын

Perhaps it would be better if economic theories excluded the concept of opportunity cost. This is because it can lead to confusion and cannot be precisely quantified mathematically. There are countless potential opportunity events (for example, one of the myriad possibilities when someone decides to do something might be getting visited by aliens and gaining superpowers, haha). Even if we select the few with the highest benefits, it's still difficult to scientifically quantify them precisely. It might be better to choose several different path events and then compare their respective benefits. Regarding the law of diminishing marginal utility, consider a treasure chest that requires five identical keys to be inserted simultaneously to open (or a lottery, where the more correct numbers you have, the bigger and faster the prize). In this scenario, each found key increases happiness progressively, with the joy from finding the last key potentially overwhelming someone with happiness. Additionally, there are cases where the combined effect of the parts is greater than their simple sum, resulting in an increasing effect. also,For instance, the marginal utility of scientific discoveries or technological advancements, when viewed historically, is increasing. The benefits brought about by technological developments in the past few decades far surpass those of the past.