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Understanding Fixed, Variable and Marginal Costs in Economics


Understanding Fixed, Variable and Marginal Costs in Economics

Understanding Fixed, Variable and Marginal Costs in Economics

Learn more about fixed, variable and marginal costs.


Students: 1,467
Course Description

Fixed cost, variable cost and marginal cost are very important concepts to understand in economics. Fixed costs are business expenses and are often time-related such as salaries and rents which are paid on a monthly basis.
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Variable costs are expenses related to business activity and change in proportion to an increase or decrease in this activity. Marginal cost is the change in total cost that arises when the quantity of goods produced increases by one unit. It is a measure of the cost of producing one additional unit. This free online economics course explains in a simple and clear manner the concepts behind fixed, variable and marginal costs using worked examples. The relationship between marginal cost, average total cost and marginal revenue is also outlined. By studying this course the learner will appreciate the importance of these costs in economics, and why and how they are calculated. This free online economics course will be of great interest to all professionals in economics, finance and business who would like a greater knowledge and understanding of fixed, variable and marginal costs, and to all learners who would like a greater insight into the factors that determine these key costs in economics.

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Learning Outcomes

Learning outcomes: - Explain the concepts: Fixed costs, Variable costs, Marginal costs; - Visualize average costs and marginal costs as a slope; - Compare marginal revenue and marginal costs; - Explain long term supply curve and economic profit;


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Module Title
Module 1: Understanding Fixed, Variable and Marginal Costs in Economics
Module 2: Fixed, Variable and Marginal Costs Assessment

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Course Rating (By Learners)
Course Title Understanding Fixed, Variable and Marginal Costs in Economics
Course # 576
Course Publisher Khan Academy
Course Category 2
Content Origin
Course Description  Fixed cost, variable cost and marginal cost are very important concepts to understand in economics. Fixed costs are business expenses and are often time-related such as salaries and rents which are paid on a monthly basis. Variable costs are expenses related to business activity and change in proportion to an increase or decrease in this activity. Marginal cost is the change in total cost that arises when the quantity of goods produced increases by one unit. It is a measure of the cost of producing one additional unit. This free online economics course explains in a simple and clear manner the concepts behind fixed, variable and marginal costs using worked examples. The relationship between marginal cost, average total cost and marginal revenue is also outlined. By studying this course the learner will appreciate the importance of these costs in economics, and why and how they are calculated. This free online economics course will be of great interest to all professionals in economics, finance and business who would like a greater knowledge and understanding of fixed, variable and marginal costs, and to all learners who would like a greater insight into the factors that determine these key costs in economics.
License  This course is available from Khan Academy OpenCourseWare through the following Creative Commons licence:
Creative Commons License
Release Date 14 December 2012
   
Content  
Course Duration (Avg Learner) 1-2 Hours
Video/Audio High
Audio Only High
Animation None
Assessments Yes
 
Education Level
Age appropriateness 18+ Years
Minimum Grade/Class Level Higher High Secondary School
 
Validation Level 5
ALISON Testing Yes
Certification Availability
PDF Download Yes
Parchment Yes
Framed Certification Yes
   
Merchandise Availability
Marketing Information
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Course Forum  View

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  • Faig Kerimov Azerbaijan Very interesting course. I 've learnt a lot of things.Thank you. 2014-10-24 13:10:38
  • Telmo Guevara Ecuador Well presented lectures, it might help to have some assignments or exercises performed to better understand material presented 2014-09-24 02:09:47
  • Cynthia Prentice United States of America It was a very informative course. It will definitely help me understand the information I am learning at my university. 2014-09-19 11:09:24
  • Ahmad Abdelqader Jordan Course Module: Module 1: Understanding Fixed, Variable and Marginal Costs in Economics Course Topic: Long Term Supply Curve and Economic Profit Comment: This subject is very helpful.. 2013-07-02 10:07:45
  • Hafez Qubbaj Kuwait Course Module: Module 1: Understanding Fixed, Variable and Marginal Costs in Economics
    Course Topic: Introducing Fixed, Variable, and Marginal Costs
    Comment: I FOUND IT USEFUL 2012-12-29 06:12:21
  • Sri Laxmi India Course Module: Module 1: Understanding Fixed, Variable and Marginal Costs in Economics
    Course Topic: Introducing Fixed, Variable, and Marginal Costs
    Comment: This subject is very helpful... 2012-12-16 12:12:34
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Free, Online Understanding Fixed, Variable and Marginal Costs in Economics Course.