Marginal Cost Explained I A Level and IB Economics

​Using straightforward numerical examples, this short video introduces students to the concept of marginal cost. Marginal cost is the change in total cost for a business as a result of a one-unit change in output.
#aqaeconomics #ibeconomics #edexceleconomics #economicsexplained #tutor2ueconomics

[@tutor2u-official]

We have some great free study resource collections for A level Economics and IB Economics - click here www.tutor2u.net/economics/collections

[@tutor2u-official]

Find our free online lessons for Year 12 economists here! www.tutor2u.net/economics/collections/online-lessons-for-year-12-alevel-economics-students

[@susannduku243]

You brought it to be so simple to understand. Thanks from Kenya 🇰🇪 2023

[@tutor2u-official]

you are very kind Susan - thank you

[@apotheosisaurel9248]

Thanks for this excellent and straightforward explanation. As someone who isn't here for economics but for calculus, this was very didactic, I even want to continue learning about this topic, haha. Good luck to all Microeconomics students. 📚

[@tutor2u-official]

Glad you enjoyed it!

[@fairuzashmanabila9928]

Finally found great vids with British accent lol Thank you for uploading. It really helps! Your voice reminds me of my business teacher in secondary by the way. Greetings from Indonesia Sir!

[@tutor2u-official]

Glad I could help! Glad I can help - please spread the word about our channel! Good luck!

[@fiyin4167]

I found this video very productive and helpful, thanks a lot.

[@tutor2u-official]

You are welcome!

[@NadaBoukouyen]

thank u so much for this straightfoward explanation!

[@Ye-pi1yo]

As a non native english speaker who is studying economics, I need someone to describe to me what units mean. I actually searched for it, I found that it means an item manufactured. then is it equal to goods in terms of Economics?

[@tutor2u-official]

Units means how much of something has been produced

[@Ye-pi1yo]

@@tutor2u-official thank you!

[@francescakray233]

Tuesday 30th April 2024. 21.34pm. "Dear Sir. Good-evening. How are you? I trust you are well. I, think i understand Marginal cost. Well, I still do, not understand it. Please can you explain it again." Thank you. Mr Francesca Kray

[@satyamsrivastav1772]

Great video sire,, nice explanation

[@tutor2u-official]

Glad you liked it

[@br2266]

My God tutor2u, your voice makes me want to learn lol

[@tutor2u-official]

You are too kind!

[@gracia3577]

Thank you,so helpful sir❤️

[@christinemk9746]

Thank you for helping me understand love your videos.

[@tutor2u-official]

You are so welcome!

[@minamondal7931]

Thank you teacher I get to know about the points in 3rd situation 🙏🙏

[@tutor2u-official]

You're welcome 😊

[@Halloitsme19]

Very clear thanks for the explanation

[@tutor2u-official]

Glad it was helpful!

[@bradledford8877]

Thank you, this explanation really helped me.

[@tutor2u-official]

Glad it helped!

[@tasneem6427]

Finally I got this.

[@giftmichaelkhondowe9772]

Wow. Great video. Tilipo lipo che

[@shobih9097]

Wow

[@jonathansinkala3623]

Thank you so much

[@gauravmohan9271]

Thank you…

[@jonathansinkala3623]

So this implies that MC= Current Total Cost - Previous Total Cost/ Current unit - previous unit

[@avatar8048]

what is the difference between variable and marginal costing?

[@tutor2u-official]

Variable cost is cost that depends on output, marginal cost is the cost of producing the next unit of output

[@johnpaulong5603]

Can I ask if can marginal cost decrease? Or marginal costs should constantly increase?

[@tutor2u-official]

Both are possible - it depends on the nature of production. Drawing a linear (straight-line) supply curve suggests that marginal costs are rising but it is not inevitable. In many industries such as mass production manufacturing, the marginal cost is constant.

[@johnpaulong5603]

@@tutor2u-official Thank you very much.

[@muhammadalfaraby6125]

Ok tahnkyou you help me

[@alisyaakrang4258]

what happend if price below the marginal cost?

[@aliahmontefalco9687]

Why does in the first example it didn't use the formula of marginal cost? But in the second example it does

[@aliahmontefalco9687]

@tutor2u

[@viji62861]

🙏

[@nishumaurya4302]

Thanks

[@tutor2u-official]

Welcome

[@rinasari7815]

How if there is only price instead of total cost? Can we calculate the MC

[@tutor2u-official]

Total cost is the area underneath the marginal cost curve

[@adokorachpaula4362]

Can we look at the long run average cost curve

[@tutor2u-official]

will do - thanks for the suggestion

[@user-fd2bl1ny5d]

K İ N G

[@aleenayezaa336]

Where is second part of this video?

[@tutor2u-official]

Not sure! I'll investigate!

[@charliegardner4471]

Why does MC equal Supply?

[@tutor2u-official]

Because the supply curve is essentially the cost of producing extra units - which is also the idea of marginal cost

[@BaharSaadElAbyadStudent]

kral aq

[@claudiohernandez251]

Thank you @tutor2u