Livingeconomics

A Matter of Costs (9/11/2007)

The rate at which variable cost changes in the short run is related to the nature of the fixed cost.

Keywords: AFC, ATC, AVC, average fixed cost, average total cost, average variable cost, capacity constraint, diminishing returns, efficiency maximization, increasing returns, marginal cost, MC, power generation, profit maximization

Cost Glossary - Notes (2/8/2013)

A glossary of terms in short-run production and cost

Keywords: 1/MP, AFC, ATC, AVC, inflection point, MC, MP, TC, TFC, TO, TVC, TVI, variable input

Marginal Cost and Average Total Cost (11/2/2011)

Marginal cost and average total cost can be derived from the short-run total cost subject to the law of diminishing returns.

Keywords: ATC, average total cost, law of diminishing returns, marginal cost, MC, TC, total cost

Marginal Cost and Average Total Cost (transcript) (1/29/2012)

Marginal cost and average total cost can be derived from the short-run total cost subject to the law of diminishing returns.

Keywords: ATC, average total cost, law of diminishing returns, marginal cost, MC, TC, total cost

Profit Maximization Under Natural Monopoly (1/23/2012)

Natural monopoly with decreasing average total cost can still make profit by equating marginal revenue with marginal cost while achieving economic efficiency through price discrimination.

Keywords: ATC, average total cost, marginal cost, marginal revenue, MC, MR, natural monopoly, price discrimination, profit maximization, regulation, single pricing, total revenue, total willingness to pay, TWP

Profit Maximization Under Natural Monopoly (transcript) (1/29/2012)