Revenue, Profits, and Price: Crash Course Economics #24
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Date: 2022-04-04
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Comments and reviews: 9
Prajwol
1: 25 Accounting Profit (Revenue - Explicit Costs)! = Economic Profit (Revenue - Explicit - Implicit(Opportunity Costs) 2: 40)
Business calculate their potential revenue and their costs production, including implicit costs, to make informed decision.
Companies in competitive market do not make much profit (no economic profit) 2: 44
Normal Profit - minimum level of economic profit a company needs to stay in business. 3: 25
Total Cost = (Variable Costs - 3: 51) + (Fixed Costs - 4: 00)
Average Cost - 4: 12
Average costs fall with more units of production.
Economies of Scale - 5: 20
Profit Maximizing Rule - 6: 10: - Continue to produce until marginal revenue-6: 25 is greater than marginal cost-7: 15
Law of Diminishing Marginal Returns- 8: 05
Sunk Cost - 9: 25
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1: 25 Accounting Profit (Revenue - Explicit Costs)! = Economic Profit (Revenue - Explicit - Implicit(Opportunity Costs) 2: 40)
Business calculate their potential revenue and their costs production, including implicit costs, to make informed decision.
Companies in competitive market do not make much profit (no economic profit) 2: 44
Normal Profit - minimum level of economic profit a company needs to stay in business. 3: 25
Total Cost = (Variable Costs - 3: 51) + (Fixed Costs - 4: 00)
Average Cost - 4: 12
Average costs fall with more units of production.
Economies of Scale - 5: 20
Profit Maximizing Rule - 6: 10: - Continue to produce until marginal revenue-6: 25 is greater than marginal cost-7: 15
Law of Diminishing Marginal Returns- 8: 05
Sunk Cost - 9: 25
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SELVI
One thing you forget - fixed costs are rarely fixed. Rather, they are fixed to a capacity, a stepping cost. If you buy one pizza oven, you might be able to produce 1000 pizzas an hour, that oven is your fixed cost. But your capacity is limited to 1000 pizzas per hour. So you have to buy a second oven later if your demand rises. Fixed costs therefore increase.
Thus this video analyse us that accounting profit is much easy to earn rather than economic profit. (Accounting profit = Total Revenue - Total Cost)
(Total Cost = Fixed Cost + Variable Cost)
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One thing you forget - fixed costs are rarely fixed. Rather, they are fixed to a capacity, a stepping cost. If you buy one pizza oven, you might be able to produce 1000 pizzas an hour, that oven is your fixed cost. But your capacity is limited to 1000 pizzas per hour. So you have to buy a second oven later if your demand rises. Fixed costs therefore increase.
Thus this video analyse us that accounting profit is much easy to earn rather than economic profit. (Accounting profit = Total Revenue - Total Cost)
(Total Cost = Fixed Cost + Variable Cost)
reply
eoghan.
It seems to make sense for this to be a smooth curve. But then I was thinking: if each worker is someone who can make one pizza (in a certain amount of time, then pizzas made should be directly proportional to workers. Of course at some point this stops - the ovens can only cook ten pizzas at a time say - but wouldn't this make it a straight curve that becomes flat after the tenth worker? Anyone able to explain this to me?
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It seems to make sense for this to be a smooth curve. But then I was thinking: if each worker is someone who can make one pizza (in a certain amount of time, then pizzas made should be directly proportional to workers. Of course at some point this stops - the ovens can only cook ten pizzas at a time say - but wouldn't this make it a straight curve that becomes flat after the tenth worker? Anyone able to explain this to me?
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Almas
Ah I see. At first I'm confused when you talk about making pizza increasing marginal cost. It's about productivity right? Like increasing one pizza per hour, increases marginal cost of that pizza. As long as the marginal cost is below marginal revenue, produce that pizza.
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Ah I see. At first I'm confused when you talk about making pizza increasing marginal cost. It's about productivity right? Like increasing one pizza per hour, increases marginal cost of that pizza. As long as the marginal cost is below marginal revenue, produce that pizza.
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Astrolabium
-4: 17 -the average cost of producing most things -initially- falls as more is produced-
-7: 10 -the more you make, each additional unit is -eventually- gonna cost more-
I had to write them down side by side to -see- the difference lol!
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-4: 17 -the average cost of producing most things -initially- falls as more is produced-
-7: 10 -the more you make, each additional unit is -eventually- gonna cost more-
I had to write them down side by side to -see- the difference lol!
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Richard
I would like to see the risk of taking another person on into account i. e. Would I still make money apointing another person is the shop goes quiet, but I support that diverges too much from the main message.
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I would like to see the risk of taking another person on into account i. e. Would I still make money apointing another person is the shop goes quiet, but I support that diverges too much from the main message.
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Ben
10 million Nzd turnover my Dads Civil Construction Business, Government takes more than half in taxes and regulations costs. Then pay wages and expenses you keep $400, 000nzd what my Dad keeped yearly
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10 million Nzd turnover my Dads Civil Construction Business, Government takes more than half in taxes and regulations costs. Then pay wages and expenses you keep $400, 000nzd what my Dad keeped yearly
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Gagandeep
Why do I have to watch two ads to see the video: /? One video itself is distracting and unpleasant and now I have to watch another one to watch this video
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Why do I have to watch two ads to see the video: /? One video itself is distracting and unpleasant and now I have to watch another one to watch this video
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ray1983able
Fixed Cost, Variable Cost, Is it worth it costs, Economies of scale, Profit maximuzing rule, Marginal revune, Marginal cost, Sunk Cost.
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Fixed Cost, Variable Cost, Is it worth it costs, Economies of scale, Profit maximuzing rule, Marginal revune, Marginal cost, Sunk Cost.
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