C.4 Long run cost analysis | Cost - Microeconomics

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In the long run, no cost is fixed. This video explains how to analyse cost curves in the long run. We'll see how they form derived from multiple short run cost curves.
Related videos:
-Short run cost analysis: • C.3 Short run cost ana...
-Fixed and variable costs: • C.1 Fixed and variable...
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[@Manojkumar1998-k9w]

It's very easy to understand thank you so much.

[@deepak_chahal_w]

Superb !

[@leonardoochoaruiz2748]

In the last video you said the point where the slope of TC is zero is where MC is at its minimum, now you say is where AV is at its minimum...

[@Rebeccacrudele]

I agree with you, doesn't make sense

[@ThatWookieGuy]

Leonardo Ochoa Ruiz which makes more sense as MC is just the change in total cost when you increase quantity by one. I remember doing some total cost minimization problems (though our lecturer wouldn't it) but when you take derivative at any given point you get slope. We took derivative when slope was zero, which is where the MC slope is zero.

[@user-md4tw8sp1c]

Maybe because of the short run and the long run? MC stands for only one product so it corresponds with the short run assumption; AC stands for the average cost for all, so it coresponds with the long run. And because AC varies more slowly than MC for its higher fixed cost, it changes more slowly than MC ?

[@osamabinkhalid8723]

Can you explain why the long run total cost curve is of that shape?

[@atiqullahrahmat12]

Thank you very much, it help me a lot. thank you.

[@Policonomics]

thank you for watching! 🅿

[@majidAbdullah1]

Good Work

[@Policonomics]

Dear +ِAbuKhalid , We just uploaded our fourth video to our series on Game Theory. It's about the Battle of the Bismarck Sea, we hope you find it interesting! kzbin.info/www/bejne/aHWniqeaaqt3i80 If you like it, spread the word! Thanks for watching, The Policonomics Team

[@ThatWookieGuy]

Good videos. We don't understand how in a previous video you say that we can derive the shape of total cost from the marginal cost curve, the inflection point or the lowest point on the total cost curve is the lowest point on the mc curve (flat zero slope part). In this video however you tell us it's actually where the average cost curve is at it's lowest. I thought the marginal cost is what explains shape pf TO as MC is just the derivative of TC. Would appreciate it if you could offer any help.

[@yalijiang7902]

In fact I think the lowest point of AC is wrong