About This Chapter
Producers & Production in Microeconomics - Chapter Summary
Whether you have a beginner's or more advanced understanding of producers and production in microeconomics, this chapter can successfully increase your comprehension. Entertaining lessons make it easy to understand concepts that include short-run production, economies of scale, activity-based costing and the law of diminishing marginal returns. Review these lessons anytime via your computer, smartphone or tablet. Assess your knowledge with short lesson quizzes and a chapter exam. When finished, you will be ready to do the following:
- Discuss total product, average product and marginal product in economics
- Identify fixed costs and variable costs
- Analyze mixed costs and define and calculate unit costs
- Make production decisions in the short run using the total cost curve
- Explain differences in average cost and total cost when making production decisions in the short run
- Share how average and total costs differ from marginal costs
- Define product and cost curves
- Exhibit an understanding of long-run production decisions in economics
- Differentiate between short-run costs and long-run costs in economics
- Provide the definition of process costing
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. How to Analyze Mixed Costs
In this lesson, we'll explore costs. We'll learn about fixed and variable costs, and we'll revolve our lesson around mixed costs. Finally, we'll look at some examples and learn how mixed costs are calculated.
5. Unit Cost: Definition, Formula & Calculation
Unit cost is a fundamental quantity used for businesses ranging in size from a pre-revenue bakery to a certain multi-national smartphone company. This lesson will show you what it is, how to calculate it, and why it is important to know.
6. 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.
7. 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.
8. 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.
9. 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.
10. 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.
11. 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.
12. 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.
13. 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.
14. Activity-Based Costing: Definition, Formula & Examples
Manufacturing companies rely on product cost data to set product sales prices and determine if products are producing profits. This lesson covers activity-based costing and describes how to assign overhead costs to products using this method.
15. Process Costing: Definition & Examples
Costing techniques are used to determine how much it costs a company to manufacture a product. Process costing is the method used when comparable products are manufactured. In this lesson, learn what process costing is and how to use this technique.
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Other chapters within the UExcel Introduction to Microeconomics: Study Guide & Test Prep course
- Microeconomics Basics
- Overview of Supply & Demand in Microeconomics
- Microeconomics & Consumer Behavior
- Business Structures & the Economy
- Accounting & Economics
- Economic Market Structures
- Scarce Economic Resource Markets Basics
- Business Technology & Development
- Microeconomics & The Government
- Studying for UExcel Introduction to Microeconomics
- UExcel Introduction to Microeconomics Flashcards