Microeconomic Cost Curves (Old Version) MC, ATC, AVC, and AFC

Mr. Clifford explains key economic concepts related to cost curves in microeconomics. He covers marginal cost, average total cost, average variable cost, and average fixed cost, illustrating how these curves interact. The video also demonstrates how to apply these concepts to calculate total costs using a practical example.

What happens to the average total cost when the marginal cost is below it?

• The average total cost decreases.

• The average total cost becomes zero.

• The average total cost increases.

• The average total cost remains constant.

Which cost curve gets closer to the average total cost without touching it?

• Average variable cost

• Total cost

• Marginal cost

• Average fixed cost

How is the average total cost calculated?

• By adding average fixed cost and average variable cost

• By subtracting average fixed cost from total cost

• By adding marginal cost and average variable cost

• By dividing total cost by quantity

If the average variable cost for 10 units is $6, what is the total variable cost?

• $70

• $6

• $60

• $10

What is the average fixed cost if the total fixed cost is $10 for 10 units?

• $100

• $1

• $10

• $0.10