00:01
So here we're talking about costs.
00:02
We are talking about marginal cost.
00:06
We are talking about average cost.
00:10
And we are also talking about average variable cost.
00:14
And we have a bunch of events.
00:17
So the first one is wages up.
00:19
This obviously increases the marginal cost because, well, labor is a variable factor.
00:26
You're going to need to hire more labor to produce more.
00:29
It definitely increases your average costs.
00:31
Because anything that increases total costs also increases average costs.
00:36
And it also increases average variable costs because labor is a variable factor, right? you can hire and fire workers.
00:45
Labor is variable.
00:46
And so it is part of the variable cost...
