Interactive Tools for Production and Costs
Interactive Tools for Production and Costs
Interactive Tools for Production and Costs
Read and respond to the 3 parts below. Label the response PART 1, PART 2 and PART 3. Rather than evaluate how the writer answered the prompt, respond to their thoughts and ask any questions you feel are left unanswered. Speak to them directly in your writing (its ok to address the writer as “you”). Use the same source provided for each PART.
The prompt is: For this discussion, we will be looking at several interactive tutorials or quizzes that might help you and your classmates with any concepts or calculations that you are having difficulty with.
If you are having difficulty with the numerical calculations covered in this module, try this interactive tutorial:
http://www.sambaker.com/econ/cost/cost.html
If you are having difficulty with some of the conceptual issues covered in this module, try the following interactive tutorial:
http://www.pearsoncustom.com/mct-comprehensive/asset.php?isbn=1269879944&id=12353
Note that you don’t need to look at both tutorials, just pick one or the other and share with your classmates whether you found it useful or not.
Then search the web and try to find at least one other tutorial on production costs (marginal costs, variable costs, total costs, etc.) that you find useful for this module. This could be a tutorial, a video lesson, an online practice quiz, etc. Share the link with your classmates and explain what you found useful about it. As a follow-up to your first post, try using one of the tutorials that your classmates found and share your thoughts.
PART 1
I found the Economic Interactive Tutorial, “Cost Concepts” by author Samuel L. Baker (1985-2000) very useful, because it introduces and defines the economics concepts of total cost, fixed cost, variable cost, and marginal cost. Also, the tutorial provides example charts and graphs of each concept.
Moreover, according to my search I found this tutorial video, “Maximizing Profit Practice – Micro 3.9” by author Jacob Clifford (2014), very useful for this module because the video shows a step by step calculation of each column: output (OP), variable cost (VC), fixed cost (FC), total cost (TC), and marginal cost (MC).
Web link: https://www.youtube.com/watch?v=BQvtnjWZ0ig
Also, the video talks about what kind of formula used to calculate each column. For example, to calculate the TC column used formula: TC = VC + FC. I found this formula was useful, because after completing the column TC, this helps calculate the MC column using formula:
MC = Present TC – Past TC.
References
Baker, S. L. (1985-2000). Cost Concepts. Retrieved from http://www.sambaker.com/econ/cost/cost.html
Clifford, J. (2014). Maximizing Profit Practice – Micro 3.9 [Video]. Retrieved from https://www.youtube.com/watch?v=BQvtnjWZ0ig
PART 2
See the below links and answers.
http://www.sambaker.com/econ/cost/cost.html
This tutorial is useful. It gives detailed descriptions of concepts in this class. It uses an example of home care to explain concepts such as marginal cost, variable cost, fixed cost, and total cost. The tutorial also uses diagrams to illustrate various concepts. The tutorial also has questions to check if the user has understood calculations and concepts.
https://www.youtube.com/watch?v=98DcdXiNu4E
I prefer video tutorials. This tutorial is short but gives a detailed explanation of different ideas. The video shows how to calculate the total cost, marginal cost, average variable cost, and average total cost. The video also explains what these concepts entail.
PART 3
The Pearson lesson was useful for me because it focused on the principles that I was struggling with. I was having a hard time understanding the utility of marginal cost (MC). I was having a hard time understanding why a business would bother operating if the average cost exceeded the price. It turns out that if the average variable cost is less than the price, total revenue would exceed total variable cost and operating at a loss could make sense, though is probably not sustainable.
I’ve found Investopedia.com to be a valuable (free) resource for most of my MBA courses. I used the Marginal Benefit and Marginal Cost section of the microeconomics chapter to help me through module two of this course. Perhaps others will find it useful.
BONUS: The Motley Fool is another good resource, and proved useful for my understanding of module two. It helped me understand why the marginal cost is horizontal, i.e., doesn’t slope northward like total and variable costs.
