Maximizing Profit and the Average Cost Curve

Title:
Maximizing Profit and the Average Cost Curve
Description:

Being able to predict your company’s profit is a very useful tool. In this video, we introduce the third concept you need to maximize profit — average cost. When looked at in conjunction with the marginal revenue and marginal cost, the average cost curve will show you how to accurately predict how much profit you can make!
The usefulness of these tools does not stop there. Sometimes, you can’t make a profit. You’ll have to take a loss. These tools can also show you how to minimize losses, and make decisions on whether a company should enter or exit an industry.
We also define terms such as zero profits and sunk costs in this video.
Microeconomics Course: http://mruniversity.com/courses/principles-economics-microeconomics

Ask a question about the video: http://mruniversity.com/courses/principles-economics-microeconomics/profit-maximization-average-cost#QandA

Next video: http://mruniversity.com/courses/principles-economics-microeconomics/supply-curve-increasing-cost-industry

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Video Language:
English
Team:
Marginal Revolution University
Project:
Micro
Duration:
12:18
Format: Youtube Primary Original Synced
This video is part of the Marginal Revolution University team.

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