20. Short Run Cost Curves from Short Run Production

[samchenliwei1990]

Hi I have a Question. When does MC and AVC starts at the same point in the graph? I mean the intercepts with Y-axis is the same?

[TheIslandGIL]

Hi i really like your video but plese how can we reduce a Cost of Production in a Short Run?

[Beetroots19]

Your better then my lecturer in TCD.

Your very good at explaining the concept.

Thank you.

[mthirkettle]

At 5minutes, you drew AVC and MC, in such a way that would intersect the y-axis at different points.

AVC and MC must intersect Y axis at the same point.

Just being pedantic, but great video never the less.

[intromediateecon]

@mthirkettle You're right.  I should have been more explicit by drawing the two curves to have the same intercept. I have been meaning to post another video on cost curves (to supplement this one, not replace it). In that video, I'll be more explicit about the two curves having the same intercept. Thanks!

[bsdlite]

@mthirkettle true, unless AP and MP are zero at L = 0, as typically drawn

[intromediateecon]

@bsdlite Another good point. In this case, both AVC and MC would shoot toward infinity at zero. For this example, they have the same non-intercept (strangely).

If the point @mthirkettle makes is that MC and AVC start at the "same place," that point remains valid. But, it is right to call it pedantic... the whole point is to give a reason for U-shaped cost curves.

[erochelle2612]

Thank you for loving this so much to post this well-produced and organized video. You saved me on an exam! Blessed Be!