CrashCourse - 2016-02-17
How do companies make money? What are profits? Revenues? How are prices set? This week, Jacob and Adriene are talking business. Whether you're selling cars, pizza, or glow sticks, this video has pretty much all the information you need to run a business. Well, not really, but there's a lot of good stuff in here. *** Crash Course is on Patreon! You can support us directly by signing up at http://www.patreon.com/crashcourse Thanks to the following Patrons for their generous monthly contributions that help keep Crash Course free for everyone forever: Mark, Eric Kitchen, Jessica Wode, Jeffrey Thompson, Steve Marshall, Moritz Schmidt, Robert Kunz, Tim Curwick, Jason A Saslow, SR Foxley, Elliot Beter, Jacob Ash, Christian, Jan Schmid, Jirat, Christy Huddleston, Daniel Baulig, Chris Peters, Anna-Ester Volozh, Ian Dundore, Caleb Weeks -- Want to find Crash Course elsewhere on the internet? Facebook - http://www.facebook.com/YouTubeCrashCourse Twitter - http://www.twitter.com/TheCrashCourse Tumblr - http://thecrashcourse.tumblr.com Support Crash Course on Patreon: http://patreon.com/crashcourse CC Kids: http://www.youtube.com/crashcoursekids
I struggle to ignore sunk costs. I can't stop thinking about the money and time wasted. Even for little things like when I bought a pen for an exam and then realising pencils were only allowed
Duvee Hie keep the pen for another exam. Sunk costs are not always lost forever, just think of them as potential future investments and try to focus on everything else
"become an entrepreneur"
Establishes tic tac empire at school
you should create a mob, where you're the only one with access to mint related snacks, and if someone doesn't want to pay for their tic tacs or orbit gum, then you hire the school bully and pay him in Altoids, the most valuable mint
Love this channel
Rob Scallon me too.
how to spot metalheads? They are commenting here
love your channel man XD
lol didnt expect to see one of my favorite youtubers here haha
i agree 🤘🏽
Damn it, Jacob, you weren't supposed to take "Crash" literally. -_____________-
XD
TOO MANY COOKS!
+Darkrai's Victum lol
+Darkrai's Victum SPOIL THE BROTH
+Darkrai's Victum YOU MUST CONSTRUCT ADDITIONAL PYLONS!
read that as too many cocks, thanks for the laugh mate!
@ty grande same
I have an exam in 2 hours LET'S GOOOOOOO
Oh yeah, apply economic principles to your love life, great idea.
Otherwise great video.
Small insignificant rough patch in your 20 year marriage? Get out of there! - America
+Prestige Potato buy that isn't what was said at all.
+Ben J You're fortunate to have never been in an unhealthy relationship. Sunk Cost Fallacy can get people killed when it comes to relationships. It nearly cost me $4000, my family, friendships, and probably years of physical and emotional abuse. The "I've put so much time into it" thing is a very dangerous thought process.
One thing you forget - fixed costs are rarely fixed. Rather, they are fixed to a capacity, a stepping cost. If you buy one pizza oven, you might be able to produce 1000 pizzas an hour, that oven is your fixed cost. But your capacity is limited to 1000 pizzas per hour. So you have to buy a second oven later if your demand rises. Fixed costs therefore increase.
True, but they are these costs are considered Fixed in the Short Run which is where a lot of microeconomics takes place.
+99thTuesday cost of maintenance is not fixed.
True. I would also add that, in the long run, anything and every thing becomes a variable cost.
yeah your analysis are so true..
when he bought is first oven he was at the short run with a plant size capacity to produce 1000per hour... as the demand increases in the market since the capacity is utilized already the firm needs to vary its capital in order to meet up with his demand... hence the firm is in the Long run and no Longer in the Short run where cost is fixed
Thank you Stan for "Breaking it Down!"
You're the real MVP!
"It takes a lot to make a stew..."
+sinecurve9999 I was thinking the same, I had to hold myself back from bursting into song.
+sinecurve9999 Which one do you hear in your head? In my head it goes straight to the slowdown near the end when Snarf is crawling on the floor.
sinecurve9999
The best part of the blooper at the end is hearing someone saying: «again!»
The path to CrashCourse Ethics is open
+Alfonso J. Ramos (theraot) I think they'll take care of it in CC Philosophy, as it is a part of just that. I'd love to see that though.
@DontReadMyNameMarvin yes, they will cover ethics there, yet ethics is large enough for its own series. It won't surprise me if they skim over it on philosophy. In fact I think that both economy and philosophy are making the case for CrashCourse Ethics.
Best crash course ever in my opinion.
+hoarf There is nothing political about microeconomics lol
+hoarf
What happen to John Green and stan?
+John von Shepard I'm not a 13 year old girl so I don't care about Jhon Green and Stan's subject was not very insteresting in my opinion.
@4:17 “the average cost of producing most things initially falls as more is produced”
@7:10 “the more you make, each additional unit is eventually gonna cost more”
I had to write them down side by side to “see” the difference lol!
This is literally my entire MicroEcon semester. I physically checked every page of my notes, and this is everything.
This episode was very detailed and well done, good work :D!
Clifford!! I bought ur app ur the reason I passed macro and micro economics!
which app
clicked LIKE after "Lets Break it down"
1:25 Accounting Profit (Revenue - Explicit Costs) != Economic Profit (Revenue - Explicit - Implicit(Opportunity Costs) 2:40)
Business calculate their potential revenue and their costs production, including implicit costs, to make informed decision.
Companies in competitive market do not make much profit (no economic profit) 2:44
Normal Profit - minimum level of economic profit a company needs to stay in business. 3:25
Total Cost = (Variable Costs - 3:51) + (Fixed Costs - 4:00)
Average Cost - 4:12
Average costs fall with more units of production.
Economies of Scale - 5:20
Profit Maximizing Rule - 6:10 :- Continue to produce until marginal revenue-6:25 is greater than marginal cost-7:15
Law of Diminishing Marginal Returns- 8:05
Sunk Cost - 9:25
love the channel!
cant help but notice that Jacob doesn't blink at all..
Great channel.
6:21 STAN!
Im deeply in love with both of you.
7:48 Ilana & Abbi from Broad City?
7:21 Behind the left side of the restaurant Spongebob was fueling them with the power of imagination
I'm a have to watch this 20 more times. I understand it but then I don't. Lol.
I can't even explain how helpful I find these videos! I always watch after I finish reading my chapters from the micro and/or macro book and this really makes things easier to remember. So thankful! :D
I'm going to start using economics in my relationships
Now I'm hungry for pizza.
7:23 spongebob located.
10:35 just the enthousiastic smile on the dude's face. Makes my day
That 'Break It Down' tho 😂😂😂
10:15 Ah, but you're forgetting that new relationships have a very high startup cost. If you're going to use economics to give relationship advice, get it right! ;-)
"Gilmore girls " FFS
I learnt a great deal from this channel for my final exam. THANK YOU SO MUCH!!
"Too-Many-Cooks, TOO MA-NY COOKS! Too-Many-Cooks! TOO MANY CO-OO-OO-OH!"
This was a really informative episode. Thanks :)
that ACDC belt buckle
Been waiting on the monopoly episode since this course started lol
YOU GUYS SHOULD DO ORGANIC CHEMISTRY!!
PLEASE HELP
I saw your little SpongeBob Squarepants at 7:23 when you said imagination! Very clever :)
genuinely helping me so much, right now im doing an extension subject (starting it two years early ) please do more of these !
I'm in highschool, and I found this very helpful.
omg, the couple is so cute! made me smile :)
I appreciate the blooper thrown in at the end. :D
love how much mileage you guys get out of the footage of the wine-drinking retired couple
+Greg Biché That footage is better than Star Wars. I could watch it all day.
6:21 How do you do, fellow kids?
I had a test about it today (still awake so its today :D) for the description part of the single costs, i would have wanted a bit more visualisation, some other kinds of graths for example, because the talk alone doesnt get you to understand things fast enough for a youtube video... just a tip for the future^^
+TheNefari We focus on the big picture stuff at Crash Course. If you are interested in learning all the cost curves you can check out my channel
why were you up at 1 an
Have u never had 2 cram 4 a test?!
nah i never bother
"Well there you go. Everything you need to know about how to contribute to some of the biggest problems we face as a species today. Go ahead and drive that head up your ass and get to work!"
9:18 story of my life
Bart B. - 2017-01-23
a young scotchman comes home and says proudly to his father: I saved a lot of money by running behind the bus. "Stupid lad!" his father blurts. "by running behind a taxi, you would have saved a lot more".
Jonah de Leseleuc - 2019-04-17
hate to be the guy who doesn't get it lol
Thabang Tukule - 2019-07-19
I don't understand the logic
Holy Cannoli - 2019-07-29
@Thabang Tukule
Running cost $0. For example let's say the bus would cost $2 and the taxi would cost $20. The father is saying that he is "saving" more money when he doesn't ride the taxi than when he doesn't ride the bus. And in the moment you might say the you do save more, but in reality you are spending $0 no matter what you run behind. If you spend $0 either way, there is no actual saving when comparing which vehicle you run behind.