Short-run production costs

In this lesson we start to explore the link between productivity and costs. We explore marginal cost, average fixed cost, average variable cost, average total cost, total cost, and total variable cost and how these change as total output changes.

Fixed, variable, and marginal cost

Marginal cost, average variable cost, and average total cost

Graphs of MC, AVC and ATC

Marginal revenue and marginal cost

Short-run production costs: foundational concepts

Marginal revenue below average total cost

How costs change when fixed and variable costs change

Graphical impact of cost changes on marginal and average costs

Short-run production costs