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# How costs change when fixed and variable costs change

AP.MICRO:
PRD‑1.A.3 (EK)
,
PRD‑1.A.4 (EK)
,
PRD‑1.A.5 (EK)
,
PRD‑1.A.6 (EK)
,
PRD‑1.A.7 (EK)
This video expands on previous videos to explore how changes in production technology, changes in fixed costs, and changes in variable costs affect the marginal product of labor, marginal costs, average variable costs, average fixed costs, and average total cost.

## Want to join the conversation?

• should C3 (first row of variable cost) be 3000 instead of 2000? • The marginal costs would increase when variable costs increase. In the example, we assume wages increase 10%, which would mean all variable costs would increase by that same 10%. When he dragged the formula down, the value that populated in each cell was \$2,200, which caused the numbers to get all messed up. For those watching, please be aware of this mistake. • We can observe that Average Fixed Cost changes when productivity improves here. However, in the questions the right answer is that, AFC does not change while productivity improves.
(1 vote) • so mp will change if amount productionsfactors will change.

but if fixed cost change then it will change both variabel cost and total cost. because fixed cost is a part of total cost. fc+vc=tc

but if variabel cost change it will also change total cost? because variabel cost is a part of totalcost, so when variabel cost changes the total cost and fixed cost also changes?
(1 vote) 