About This Chapter
Georgia Milestones: Understanding Production in Microeconomics - Chapter Summary
You can use this chapter to focus on reviewing what you know about production in microeconomics. Our lessons will prepare you for the Georgia Milestones Economics/Business/Free Enterprise EOC exam by reviewing:
- Short-run and long-run costs and production
- Total, average and marginal products
- Fixed costs, variable costs, average costs, total costs and marginal costs
- Uses of the product, cost and total cost curves
- Law of diminishing marginal returns
- Economies of scale
View these short, focused lessons to get a handle on this topic in economics. We provide a timeline in each video that will help you find the information you want to study. You can also access our transcripts if you prefer to study that way.
1. What is Short-Run Production? - Definition & Examples
Economists are always interested in helping firms make more money, but how do they actually do that? The concept of short-run production helps explain how economics can really help managers.
2. Total Product, Average Product & Marginal Product in Economics
For producers, knowing how to allocate resources to create their products is vital. This lesson explains the concepts of total product, average product, and marginal product, and how each of these helps producers determine how to allocate resources.
3. Identifying Fixed Costs & Variable Costs for Producers
Ever wonder why the price of brand-name drugs is so much more than generics? Or why all tablet prices seem to congregate at about the same level? This lesson explains those and other mysteries through the lenses of variable and fixed costs.
4. The Law of Diminishing Marginal Returns
Ever wonder what keeps us from eating nothing but our favorite foods? Or how we determine in what order to request different goods? Much of that comes down to the law of diminishing marginal returns, which proves there is too much of a good thing.
5. Using the Total Cost Curve to Make Production Decisions in the Short-Run
If you've ever wondered how ice cream trucks don't carry so much ice cream as to cause it to melt out the back door, then this lesson on total cost curves and production decisions is for you.
6. Average Cost Vs. Total Cost: Making Production Decisions in the Short-Run
Knowing the difference between average cost and total cost can help a company determine prices and when it's time to expand. In case you were curious, this lesson explains both.
7. How Marginal Costs Differ from Average & Total Costs
A major concern for producers is trying to figure out how much something costs to make. Through using marginal costs, total costs, and average costs, producers get a much better idea of the prices they should charge.
8. Product & Cost Curves: Definitions & Use in Production Possibility Curves
Ever heard of having too many cooks in the kitchen? Product and cost curves demonstrate the real economics behind having too much help, too many gadgets, and not enough money to go around.
9. Understanding Long-Run Production Decisions in Economics
Companies cannot afford to simply fulfill their contracts and hope for them to be repeated. Instead, they always have to keep an eye on the long run, or the economic period just after all current contracts have been fulfilled.
10. Short-Run Costs vs. Long-Run Costs in Economics
In this lesson, we look at the role of short-run costs and long-run costs for producers. We see how both are essential to companies, while each has a specific role in long-term survival and daily operations.
11. What Are Economies of Scale? - Definition & Impact on Fixed Costs
People talk often about the importance of 'economies of scale,' but what does that even mean? This lesson explains that concept, as well as the impact that economies of scale have on both fixed costs and marginal costs.
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Other chapters within the Georgia Milestones - Economics/Business/Free Enterprise EOC: Test Prep & Practice course
- Georgia Milestones: Introduction to Economics
- Georgia Milestones: Scarcity, Choice & the Production Possibilities Curve
- Georgia Milestones: Consumer Behavior & Microeconomics
- Georgia Milestones: Supply & Demand
- Georgia Milestones: Economic Interdependency
- Georgia Milestones: Economic Price & Income Elasticity
- Georgia Milestones: Types of Economic Systems
- Georgia Milestones: Government's Role in Economic Systems
- Georgia Milestones: Market Structures in the US Economy
- Georgia Milestones: Business Organizations
- Georgia Milestones: Making Business Decisions
- Georgia Milestones: Comparative vs. Absolute Advantage
- Georgia Milestones: Macroeconomic Equilibrium
- Georgia Milestones: Scarce Economic Resource Markets
- Georgia Milestones: Measuring Economic Activity
- Georgia Milestones: Economic Growth & Productivity
- Georgia Milestones: Inflation Measurement & Adjustment
- Georgia Milestones: Understanding Unemployment
- Georgia Milestones: Aggregate Supply & Demand
- Georgia Milestones: Fiscal & Monetary Policies
- Georgia Milestones: Expansionary & Contractionary Policies
- Georgia Milestones: Money, Banking & Financial Markets
- Georgia Milestones: Central Bank & the Money Supply
- Georgia Milestones: Foreign Exchange & the Balance of Payments
- Georgia Milestones: Trade Barriers & Regulations
- Georgia Milestones: Consumer Decision Making
- Georgia Milestones: Savings & Investments
- Georgia Milestones: Credit & Interest Rates
- Georgia Milestones: Insurance
- Georgia Milestones: Taxation
- Georgia Milestones - Economics/Business/Free Enterprise EOC Flashcards