Social Sciences and History / Unit 13 SSH 1230 short lesson, about 20 seconds
Fixed, Variable, Marginal, Average
Captions available
The idea
Fixed costs come before any output and do not change with it. Variable costs rise with output. Marginal cost is the change in total cost over the change in output. Average total cost and average variable cost divide by output; both are usually U-shaped.
In practice
Rent against flour for a bakery.
Where people slip
Price above average cost means profit.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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