Why the Marginal Cost curve intersects the Average Cost curves at their Minimum

[@po2943]

this wa how really my professor explained to us. I forgot the concept for a minute, but your explanation clearly reminded me of the concept. And I am surprised how easy this concept is when we think about the real-life example (grades), THank you!

[@econhelp_official]

Glad it helped! It's a really useful concept in economics and grades is a common example because students often do this sort of thinking about their grades. Thanks for the comment, good luck with your study! :)

[@lilaclilac1907]

So incredibly helpful for my midterm studies! I really liked how you incorporated a familiar example based on real life grades! Thank you!! :)

[@econhelp_official]

Yay ❤️❤️good luck with your midterm!!! Hopefully your average goes up 🥳

[@lilaclilac1907]

@@econhelp_official Thank you! I just took it this morning and I think it went pretty well!! And I see what you did there haha! 😉😁

[@MuhammadZeeshan-pr6hl]

Love the explanation! Please make videos on other curves like the J-curve and Phillips curve, etc

[@yesimkhanh9932]

such a great content, thank you!

[@econhelp_official]

Welcome! Thanks 🙏 for the lovely comment ❤️❤️

[@JaspreetKaur-dd3xk]

Pls make a video on production cost in long run too

[@econhelp_official]

Working on it! Thanks for the comment and the sub!

[@shumengzhang5286]

thank you so much this saved my life

[@econhelp_official]

I'm so glad! Thanks for the comment Shumeng, Good luck with your study!!

[@arunabhpandey5710]

This video helped me a lot, thank you econhelp

[@econhelp_official]

I'm so glad! Good luck with your studies!

[@vikasrao4927]

thanx for making such content

[@econhelp_official]

It's my pleasure! Thanks for the comment!!

[@mukib_khan_]

Best explanation 😊

[@econhelp_official]

So glad to help! ❤️ thanks for the comments!!

[@nabeelacassim926]

Thank you, thank you, thank you!!!

[@econhelp_official]

You are so welcome! thanks for the comment!

[@markmohammed1405]

u are the best!!!!

[@econhelp_official]

You are! xx

[@Utsho1234]

u just saved me 🎉thanks a lot ❤️🤠

[@khejukejriwal187]

Thanks for this

[@econhelp_official]

Any time! Thanks for the comment!

[@aqsashahzad4810]

Great video, thanks a lot! how do you know at what points to graph the AVC curve ?

[@econhelp_official]

good question! It depends on the problem. If you are given a specific equation then you can draw it quite precisely. For instance if tc=128+3q^2+2q then AVC=3q+2 which is a linear function with vertical axis intercept 2 and slope 3. In these cases checking for axis intercepts and for any slope coefficient is a good place to start. Of course this is not the usual shape of the Avc which is most often represented as being u-shaped. In these cases we can i. identify the minimum point which will be the place AVC intersects MC and ii. make sure it's always drawn below the Atc since atc=avc +afc. From my experience that's about it. I haven't ever taught at a place which required more. We can motivate the shape with reference to the mc curve in particular. I have a video that i think might help here: kzbin.info/www/bejne/hYTEfXd6htBjhac I hope that helps?

[@bulbul190]

Thanks 😊

[@econhelp_official]

You’re welcome! Thanks for the comment ❤️

[@rini10]

Firm shut down point is minimum point of average variable cost???

[@econhelp_official]

Hi Rini Chakraborty. You are correct! The firm short-run shut-down point is at the minimum of AVC. In the long run firms will make 0 profit so P = ATC. Hope that helps and good luck!

[@rini10]

@@econhelp_official can i ask one more question?? If demand curve is downward sloping and supply curve is upward sloping then the equilibrium is stable in both walrasian and Marshallian analysis right???

[@mutaammilmahmudalamin]

if a firm's marginal cost intersects the average variable cost then what happens?

[@econhelp_official]

It will intersect avc at its minimum for the same reasons mentioned here

[@mutaammilmahmudalamin]

@@econhelp_official will the marginal cost be upward or downward

[@econhelp_official]

It will be sloped upwards, it will come right through the minimum. Does that help? This video might help I can’t remember if I discuss avc specifically but I discuss the shape of the curves Understanding Firm Short Run Cost Curves kzbin.info/www/bejne/hYTEfXd6htBjhac

[@mutaammilmahmudalamin]

@@econhelp_official thanks for being a life saver! It really helped me to grasp the concept!

[@econhelp_official]

@@mutaammilmahmudalamin aw that's so nice, no worries, thanks so much for watching my videos!

[@GaZam360]

thank you

[@econhelp_official]

You’re welcome welcome 🙏 thank you for the comment 😀

[@tarekaltesha9942]

w video