Revenue, Profits, and Price: Crash Course Economics #24

Рет қаралды 853,676

Күн бұрын

How do companies make money? What are profits? Revenues? How are prices set? This week, Jacob and Adriene are talking business. Whether you're selling cars, pizza, or glow sticks, this video has pretty much all the information you need to run a business. Well, not really, but there's a lot of good stuff in here.
***
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Пікірлер: 500

@szerdrew8034 8 жыл бұрын

This is literally my entire MicroEcon semester. I physically checked every page of my notes, and this is everything.

@prajwolgyawali6770 4 жыл бұрын

1:25 Accounting Profit (Revenue - Explicit Costs) != Economic Profit (Revenue - Explicit - Implicit(Opportunity Costs) 2:40) Business calculate their potential revenue and their costs production, including implicit costs, to make informed decision. Companies in competitive market do not make much profit (no economic profit) 2:44 Normal Profit - minimum level of economic profit a company needs to stay in business. 3:25 Total Cost = (Variable Costs - 3:51) + (Fixed Costs - 4:00) Average Cost - 4:12 Average costs fall with more units of production. Economies of Scale - 5:20 Profit Maximizing Rule - 6:10 :- Continue to produce until marginal revenue-6:25 is greater than marginal cost-7:15 Law of Diminishing Marginal Returns- 8:05 Sunk Cost - 9:25

@mothw.9620 4 жыл бұрын

Prajwol Gyawali thank you!! :)

@hoarfyt 8 жыл бұрын

Best crash course ever in my opinion.

@Pyrrhic. 8 жыл бұрын

+hoarf There is nothing political about microeconomics lol

@johnvonshepard9373 8 жыл бұрын

+hoarf What happen to John Green and stan?

@hoarfyt 8 жыл бұрын

+John von Shepard I'm not a 13 year old girl so I don't care about Jhon Green and Stan's subject was not very insteresting in my opinion.

@TheDuvee6 7 жыл бұрын

I struggle to ignore sunk costs. I can't stop thinking about the money and time wasted. Even for little things like when I bought a pen for an exam and then realising pencils were only allowed

@rileywilsonepicarcher9995 4 жыл бұрын

Duvee Hie keep the pen for another exam. Sunk costs are not always lost forever, just think of them as potential future investments and try to focus on everything else

@joecurran2811 4 жыл бұрын

If used that pen again that's not a sunk cost.

@UniusProject 4 жыл бұрын

@4:17 “the average cost of producing most things *initially* falls as more is produced” @7:10 “the more you make, each additional unit is *eventually* gonna cost more” I had to write them down side by side to “see” the difference lol!

@lionsmith3944 5 жыл бұрын

"become an entrepreneur" Establishes tic tac empire at school

@geeway5923 5 жыл бұрын

you should create a mob, where you're the only one with access to mint related snacks, and if someone doesn't want to pay for their tic tacs or orbit gum, then you hire the school bully and pay him in Altoids, the most valuable mint

@henriqueschuh4191 4 жыл бұрын

@@geeway5923 lol what the what xD

@BartBe 7 жыл бұрын

a young scotchman comes home and says proudly to his father: I saved a lot of money by running behind the bus. "Stupid lad!" his father blurts. "by running behind a taxi, you would have saved a lot more".

@JonahDeleseleuc 5 жыл бұрын

hate to be the guy who doesn't get it lol

@thabangtukule999 4 жыл бұрын

I don't understand the logic

@ncedwards1234 4 жыл бұрын

@@thabangtukule999 Running cost $0. For example let's say the bus would cost $2 and the taxi would cost $20. The father is saying that he is "saving" more money when he doesn't ride the taxi than when he doesn't ride the bus. And in the moment you might say the you do save more, but in reality you are spending $0 no matter what you run behind. If you spend $0 either way, there is no actual saving when comparing which vehicle you run behind.

@Biscuitsdefortune 8 жыл бұрын

The best part of the blooper at the end is hearing someone saying: «again!»

@robscallon 8 жыл бұрын

Love this channel

@tvastardev463 8 жыл бұрын

+Rob Scallon you here? wow

@icameherejusttocomment550 8 жыл бұрын

+fo shizzle I've never found him on one of my subscribed gaming channel.

@okiwatashi 7 жыл бұрын

Rob Scallon

@pramodsutar700 7 жыл бұрын

Rob Scallon

@mahawiryasantoso5689 6 жыл бұрын

Rob Scallon me too.

@alyssag3301 8 жыл бұрын

I can't even explain how helpful I find these videos! I always watch after I finish reading my chapters from the micro and/or macro book and this really makes things easier to remember. So thankful! :D

@anthonyb1391 8 жыл бұрын

Hey Jacob and Andriene, and all of the crash course team, keep up the fantastic work! I love these videos. Not only are they super accurate, but they're so fun to watch. I have a suggestion though. You guys should do another specific, real life example video, like the 2008 financial crisis. I suggest you do one on Standard Oil and John D. You could highlight so many real world econ concepts with Standard Oil and really demonstrate how these concepts matter -- I see that your next video is on monopolies... And Jacob, your side channel is good too, although the way in which the videos are categorized is a bit messy, but that may just be youtube. Awesome work!!

@Tlactl 8 жыл бұрын

7:21 Behind the left side of the restaurant Spongebob was fueling them with the power of imagination

@MrKoolDragon 8 жыл бұрын

Thank you Stan for "Breaking it Down!" You're the real MVP!

@DragoniteSpam 8 жыл бұрын

Damn it, Jacob, you weren't supposed to take "Crash" _literally._ -_____________-

@6otato 4 жыл бұрын

@DQINBETWEEN 6 жыл бұрын

Love the last few examples of studying and relationships on sunk costs. I've been kind of struggling to connect Economics with my current life experiences but these two examples make it more relatable and fun! Thanks for sharing the knowledge :)

@Goabnb94 8 жыл бұрын

@99thTuesday 8 жыл бұрын

True, but they are these costs are considered Fixed in the Short Run which is where a lot of microeconomics takes place.

@BloodSprite-tan 8 жыл бұрын

+99thTuesday cost of maintenance is not fixed.

@saeedbaig4249 7 жыл бұрын

True. I would also add that, in the long run, anything and every thing becomes a variable cost.

@henryscott487 6 жыл бұрын

yeah your analysis are so true.. when he bought is first oven he was at the short run with a plant size capacity to produce 1000per hour... as the demand increases in the market since the capacity is utilized already the firm needs to vary its capital in order to meet up with his demand... hence the firm is in the Long run and no Longer in the Short run where cost is fixed

@tanas2169 Жыл бұрын

That Life advice at the end hits hard for me:)

@LoganLovell 6 жыл бұрын

I have an exam in 2 hours LET'S GOOOOOOO

@Darkraisvictim 8 жыл бұрын

TOO MANY COOKS!

@xddxopkx6148 8 жыл бұрын

+Darkrai's Victum lol

@triton62674 8 жыл бұрын

+Darkrai's Victum SPOIL THE BROTH

@PFAlt 8 жыл бұрын

+Darkrai's Victum YOU MUST CONSTRUCT ADDITIONAL PYLONS!

@tygrande3127 5 жыл бұрын

read that as too many cocks, thanks for the laugh mate!

@immanuelsugar6209 4 жыл бұрын

@@tygrande3127 same

@Theraot 8 жыл бұрын

The path to CrashCourse Ethics is open

@DontReadMyNameMarvin 8 жыл бұрын

+Alfonso J. Ramos (theraot) I think they'll take care of it in CC Philosophy, as it is a part of just that. I'd love to see that though.

@Theraot 8 жыл бұрын

DontReadMyNameMarvin yes, they will cover ethics there, yet ethics is large enough for its own series. It won't surprise me if they skim over it on philosophy. In fact I think that both economy and philosophy are making the case for CrashCourse Ethics.

@badchowdhury Жыл бұрын

This channel really helps

@zybermooze 8 жыл бұрын

That was a solid piece of relationship advice.

@Aaron-gv8nv 8 жыл бұрын

This episode was very detailed and well done, good work :D!

@julietamorenomanzo7270 5 ай бұрын

"AGAIN???" amazing blooper and video, I love this channel.

@kobyqtcohen 5 жыл бұрын

love the channel! cant help but notice that Jacob doesn't blink at all.. Great channel.

@nakeishaburgess1567 6 жыл бұрын

genuinely helping me so much, right now im doing an extension subject (starting it two years early ) please do more of these !

@evancampbell7138 6 жыл бұрын

Excellent video! I am a visual learner so your videos help me tremendously. I will be sure to donate, and keep up the excellent work!

@Kattytatty02 8 жыл бұрын

I'm in highschool, and I found this very helpful.

@liampenny9077 8 жыл бұрын

Jacob's ACDC belt buckle collection is insane.

@01Evgeny 8 жыл бұрын

Guys you're awesome. Keep doing what you're doing we business students and future economists appreciate it. :D

@TrumpsaTerroristChangeMyMind 7 жыл бұрын

Clifford!! I bought ur app ur the reason I passed macro and micro economics!

@liaeverdeen7258 4 жыл бұрын

which app

@mehreenm5285 4 жыл бұрын

Love the pictures and examples, they make everything so much easier. Thought bubble is the best!

@frederickleo2748 8 жыл бұрын

This was a really informative episode. Thanks :)

@gaddyman 8 жыл бұрын

I really enjoy this channel. I have been blessed to help it continue by giving towards its future existence. I run a small business, and enjoy somewhat formally learning the thoughts that have enabled myself to grow into the location in life I currently have placed myself. I believe that this kind of resource can help others that have interest in being in business at a "micro" level understand the reasons for their decisions and enforce positive beliefs. Stan and Hank are a blessed to have spawned a maybe over looked, but very useful resource. To every buddy at Crash Course thank you.

@ericwhittaker3570 5 жыл бұрын

This is one of your best episodes. Thanks!

@paulrandall9818 6 жыл бұрын

Excellent snap shot shows on all economic topics. Although my speciality is not economics, i'm sold immediately each time I watch and want to watch more. You seem to use 5 steps to break down your topic descriptor....Intro, presentation, story, Close and a rehash as a closure for understanding. Great work and please, continue with the mitigation of educational costs by keeping it free!!!!!!!!!!!

@theekshanabandara9293 6 жыл бұрын

Best video ever on cost of production. Thank you so much for creating with magical level of creativity. Adore your work so much 😊❤😘

@ticalhoun 5 ай бұрын

You two are so great! Seeing this in 2023 ❤

@venomousme2562 Жыл бұрын

9:15 yeah im staying up rn to learn for my exam sobbb

@fastlno 7 жыл бұрын

10:35 just the enthousiastic smile on the dude's face. Makes my day

@oliviersimard5180 5 жыл бұрын

Great job! It doesn’t profit me anything telling you this ;) your always fun to watch and I learn a lot with you.

@tiqualarobinson3497 Жыл бұрын

This could not have been explained any better. Thank you Crash Course!

@franallen4509 Жыл бұрын

Fantastic! Thank you so much for this....#24

@ilhankr4079 8 жыл бұрын

I learnt a great deal from this channel for my final exam. THANK YOU SO MUCH!!

@sinecurve9999 8 жыл бұрын

"It takes a lot to make a stew..."

@PissedOffGhost 8 жыл бұрын

+sinecurve9999 I was thinking the same, I had to hold myself back from bursting into song.

@icedragon769 8 жыл бұрын

+sinecurve9999 Which one do you hear in your head? In my head it goes straight to the slowdown near the end when Snarf is crawling on the floor.

@louisptrvil8338 6 жыл бұрын

sinecurve9999

@mnejc 4 жыл бұрын

Thanks for the course!

@holtzfella753 8 жыл бұрын

really nice episode, liked it!

@luongvu8115 6 жыл бұрын

Amazing video. Thank you very much..

@prabhukumarasamy5556 4 жыл бұрын

I would definitely say that basics of my economics learning started right here .👍

@dalilmuhammadeiousafxai3013 6 жыл бұрын

thank you sir for helping me in economics

@TheNefari 8 жыл бұрын

I had a test about it today (still awake so its today :D) for the description part of the single costs, i would have wanted a bit more visualisation, some other kinds of graths for example, because the talk alone doesnt get you to understand things fast enough for a youtube video... just a tip for the future^^

@JacobAClifford 8 жыл бұрын

+TheNefari We focus on the big picture stuff at Crash Course. If you are interested in learning all the cost curves you can check out my channel

@tafadzwa_8585 8 жыл бұрын

why were you up at 1 an

@saeedbaig4249 7 жыл бұрын

Have u never had 2 cram 4 a test?!

@tafadzwa_8585 7 жыл бұрын

nah i never bother

@maxviraj 8 жыл бұрын

Thnks a lot ... ! u guys r really doing a good job ! bless u all :)

@luckypebb1e165 6 жыл бұрын

Wow I hated economics last year, and now its my fav Thanks CrashCourse!!

@awadz23 4 жыл бұрын

Omg.. love this channel 💗💗💗 i just understand all those theory and law after i start my business.. hahaha

@VendaSoul 8 жыл бұрын

Learned a lot. Thanks crashcourse. :)

@allstar904 8 жыл бұрын

I'm a have to watch this 20 more times. I understand it but then I don't. Lol.

@elviracarmona4108 7 жыл бұрын

I love this channel. It's so useful :)

@herculeskoutalidis1369 4 жыл бұрын

Awesome. Thank you so much :)

@kalya3ed8761 5 жыл бұрын

2 years later, and I am watching! thanx guys!

@siddharthmahajan5317 7 жыл бұрын

simply amazing!

@lucabush9739 8 жыл бұрын

Favorite crash course!!!!

@shelbiwallace2540 8 жыл бұрын

1. I love this channel. So much. It is such a great concept. 2. I love the little animation Easter eggs! Like at 8:30 with Craig and Hank and John too? I think one is John. I for sure see Craig and Hank!

@SafadosAteus 8 жыл бұрын

Great video!

@misosoupbaby 7 жыл бұрын

I'm in my first year of IB and ur channel helps me go over what i learnt and stuff. I like the tempo of this one and it's really cute too lol Thank u!

@gonzesse1437 8 жыл бұрын

BEST TEACHERS *EVER*!!!

@sarahlindner8893 8 жыл бұрын

YOU GUYS SHOULD DO ORGANIC CHEMISTRY!! PLEASE HELP

@roysharon5170 4 жыл бұрын

Im loving this channel. Nice production guys.. I will definitely confess in the interview with FOrtune 500.

@TheFireflyGrave 8 жыл бұрын

The notion of opportunity cost might be my favorite in Economics. I think in those terms all the time.

@zubaidi47 7 жыл бұрын

you're great keep going doing this

@indubitablyzara 8 жыл бұрын

I appreciate the blooper thrown in at the end. :D

@3lPaisita 5 жыл бұрын

love you guys!

@Roxcreek 8 жыл бұрын

that ACDC belt buckle

@SamuelNasta 8 жыл бұрын

Mongols! Mongols everywhere! hahaha

@boscomoons7742 10 ай бұрын

I will surely tell them that it started from here! Thanks a million.

@bethanymunday748 7 жыл бұрын

this crash course is gunna help me pass my final!!

@ziqianwei7470 8 жыл бұрын

I learnt more in 10 minutes than the past hours!

@MrTinyWingNerd 8 жыл бұрын

What a kickass belt!

@KiaraXoXo 8 жыл бұрын

Man I wish they more videos! Lol I have a test soon. Love this channel!! #CollegeStudent 💗

@pikminlord343 8 жыл бұрын

great video economics

@sleepycowboy18 8 жыл бұрын

The pizza chef in the pics makes cooking pizza epic 😁

@ReidarWasenius 8 жыл бұрын

Thanks!!!

@karinaandreeva7228 7 жыл бұрын

Thank you🌷

@idilabdillahi7686 7 жыл бұрын

Thank you guys sun cost is very new funny word to me but I really understood the meaning

@shad0winfo 6 жыл бұрын

this is the best channel WOWW

@ConradJD777 8 жыл бұрын

6:21 STAN!

@thabangtukule999 4 жыл бұрын

I'm going to start using economics in my relationships

@benjaminjaton3597 8 жыл бұрын

Oh yeah, apply economic principles to your love life, great idea. Otherwise great video.

@PrestigePotato 8 жыл бұрын

Small insignificant rough patch in your 20 year marriage? Get out of there! - America

@steviewonder65 8 жыл бұрын

+Prestige Potato buy that isn't what was said at all.

@icedragon769 8 жыл бұрын

+Ben J You're fortunate to have never been in an unhealthy relationship. Sunk Cost Fallacy can get people killed when it comes to relationships. It nearly cost me $4000, my family, friendships, and probably years of physical and emotional abuse. The "I've put so much time into it" thing is a very dangerous thought process.

@strawberryboy1234 8 жыл бұрын

love the vid

@mahawiryasantoso5689 6 жыл бұрын

I love Crash Course.

@poopmeat15 4 жыл бұрын

Binging these before the AP micro exam

@ejmmail1 8 жыл бұрын

I love this Chanel

@emericswitchyoureawesomean3658 6 жыл бұрын

Erin Hayes Chanel s a makeup company. You meant ****Channel right?

@dni0102 8 жыл бұрын

The profit maximisation point where MC is equal to MR just applies to Monopolies. I think you should explain Perfect compition and for them, is Marginal Cost equals Price (or Demand)

@rajvlog7848 6 жыл бұрын

Thanks, likes and subscribed

@Nihilnovus 8 жыл бұрын

Been waiting on the monopoly episode since this course started lol

@selvivlnayagamoorthy276 5 жыл бұрын

One thing you forget - fixed costs are rarely fixed. Rather, they are fixed to a capacity, a stepping cost. If you buy one pizza oven, you might be able to produce 1000 pizzas an hour, that oven is your fixed cost. But your capacity is limited to 1000 pizzas per hour. So you have to buy a second oven later if your demand rises. Fixed costs therefore increase. Thus this video analyse us that accounting profit is much easy to earn rather than economic profit. (Accounting profit = Total Revenue - Total Cost) (Total Cost = Fixed Cost + Variable Cost)

@DinethCat 8 жыл бұрын

This was probably the best Economics episode they've done. "Like a liberal arts education, its not where you go to learn any specific job, but it can help you see the big picture". That's a good justification for the liberal arts, given all the bad rep it gets as "not being a job creator". Economics as a generalized version of business administration functions like finance or marketing does give structure to the lower more specialized areas of business, without which its like walking in the dark and very 'buzzword' driven, which is what modern business education has become, its sad. Business schools are so fixated on the nuts and bolts of business that they forget that business occurs within a context; both political and economic. I think every business graduate ought to study at least some economics, and ideally another liberal arts field like politics or philosophy.