Micro 3.2 Short Run Cost Curves

This video covers topic 3.2 of the AP Microeconomics Course Exam Descriptions (CED). This video covers Total costs, variable costs, average average costs, and marginal cost.
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I would like to acknowlege the work of Dick Brunelle and Steven Reff from Reffonomics.com who’s work inspired many of the review games on ReviewEcon.com. I would also like to thank Francis McMann, James Chasey, and Steven Reff who taught me how to be an effective AP Economics teacher at AP summer institutes; as well as the countless high school teachers, and college professors from the AP readings, economics facebook groups, and #econtwitter.

[@R_kaldovich]

Thank you teacher you saved my life🤍 , I was suffering with this for hours 🙏🏼🙏🏼

[@ReviewEcon]

You're very welcome! Good luck with your studies!

[@glennwatson3313]

I really miss teaching micro.

[@ReviewEcon]

😢 maybe someday you can get back to your roots!

[@thefly6537]

11:05 would the curves shifting up be described as a shift right, left, or something else? Same question applies to the fixed cost shift that only moves the ATC

[@ReviewEcon]

Cost curves shift up and down for increases and decreases (unlike supply band demand that shift left and right). They shift the vertical distance of the increase or decrease. I hope that helps!

[@thefly6537]

@@ReviewEcon So I would not describe them as shifting left or right on an FRQ. Thank you.

[@hjaslhzvc]

what's the difference between two terms, "division of labor" and "specialization"? can i use "division of labor" to replace "specialization" on the AP test?

[@ReviewEcon]

Division of labor is breaking the production process into different parts and having different workers do different parts of the production. For example, in a car factory you might have some workers putting on tires, other workers putting on windshields, etc. Specialization means that workers get very good at whatever they are doing. Workers can specialize in the production of finished products or they can specialize in part of the production process when there is a division of labor. I hope that helps!

[@ReviewEcon]

In regards to the downward sloping portion of the MC curve, rubrics specify it is due to specialization. I suspect they would accept division of labor as well, but I can't be 100% sure.

[@amyliu7745]

Why at 8:30, it says actually $1.33?

[@ReviewEcon]

Because the true ATC a quantity of 3 on that table is $1.33 not $1.30. 😄

[@amyliu7745]

@@ReviewEconwouldn’t it be $11.33 and not $1.33?

[@ReviewEcon]

😅 I was in such a hurry to answer, I didn't catch the mistake. You're right! It is $11.33. I'll fix that soon. 😄

[@amyliu7745]

@@ReviewEcon Oh ok thanks! No worries

[@tylers5123]

13:50

[@ReviewEcon]

Good bookmark for finding fixed costs!

[@DW-th5qb]

how are you not viral

[@ReviewEcon]

Great question! 🤷‍♂️😅 Subs are growing steadily though. 😄

[@DW-th5qb]

@@ReviewEcon love your videos hope u become more famous i will recommend u to my friends lol

[@ReviewEcon]

@DW-th5qb I appreciate it! 😄

[@AllanBrien-jj1qh]

4：26 you mean marginal is the change in total?

[@ReviewEcon]

Yes, in AP micro, marginal means change in the total. Marginal cost is the change in total cost, marginal benefit is the change in total benefit, marginal revenue is change in total revenue, etc.

[@AllanBrien-jj1qh]

Thank you.I thought marginal means edge,not total@@ReviewEcon

[@ReviewEcon]

@@AllanBrien-jj1qh for the purposes of microeconomics, marginal means change in total. Marginal revenue is change in total revenue, marginal benefit is change in total benefit, marginal revenue product is changed in total revenue product, etc. Margin also means edge, but that definition won't help all students find the marginal benefit when they are given total benefit. That's why I use this definition. I hope that helps!