So what we're gonna do in this video is think about how the average total cost that we've studied in previous videos, which were actually short-runĪverage total costs, how those relate to the So in the long run,Įverything is variable. But in the long run, you can always add moreįactories or shut down factories.
The short run would be how long it takes to build another factory or how long it takes to closeĭown or sell another factory. But if we talk about longer term, so let's say you're running a factory, and, in the short run, Remember, the short run isĭefined as the amount of time over which at least one But when we're talking aboutįixed costs, by definition, that means we're talkingĪbout things in the short run.
Your average variable cost and your average fixed cost. Several videos so far, where it was the sum of
We've talked about the idea of average total cost in
0 kommentar(er)
