I wish he and Robb would've been my Consumer Economics teacher. The one I had wasn't even 1/20 as clear about it as they are. I liked her as a person though. I got a B in Consumer Economics and I think she was being nice to give it to me. I didn't understand Consumer Economics very well after I graduated. I didn't understand it very well until after I met Robb. I didn't know that wealthy people can almost entirely avoid paying federal taxes by using tax shelters until after I met him.
This is a great model to change the way of thinking towards prioritizing worker tasks properly. Everything that I want workers to accomplish removes them from accomplishing another thing that I want done, which is opportunity cost in a nutshell. Priorities really are very important.
A level economics right here guys can pretty much do the course before even taking one lesson start my economics course in 6 weeks Think i've got this nailed :)
wow just had a class today and i didn't even understand anything bc I'm new to ECON, but you explained it real good plus your other videos that continues for this example I've watched all of them and thank you so much for explaining this i get the idea, but a little confused on how to set up the graph and how would i know how to set up the RABBITS on the Y axis or X axis and for the BERRIES,
+math bone i don't think it would matter. I usually choose by the units. The 10s and 100s i usually put on the y axis. But i don't know I could be wrong :) have always worked for me though.
Imaging garnering the trust of a wild rabbit to the point that he just hangs around you in the wilderness as you look for berries. Imagine sitting under a tree with this little rabbit friend and watching the sunset together. Imagine killing him. You monster.
Yes, increasing opportunity cost is linked to the law of diminishing returns in economics. Both concepts revolve around the allocation of resources and the consequences of making choices in production and resource utilization. The law of diminishing returns, specifically applied to production processes, asserts that as additional units of a variable input are added to a fixed quantity of other inputs, the marginal product of the variable input will eventually decrease. In simpler terms, the efficiency of adding more of a particular input diminishes over time, and it may even lead to negative returns. This law is particularly relevant in the short run, where some factors of production are fixed. Now, when we consider the production possibilities frontier (PPF) and the concept of increasing opportunity cost, we observe a connection. The PPF illustrates the various combinations of goods and services an economy can produce with its given resources. As a society or firm decides to allocate more resources to produce one particular good or service over another, the opportunity cost of producing additional units of the chosen good increases. This is due to the fact that resources are not infinitely adaptable, and as they are shifted from one activity to another, the foregone opportunities become more valuable. In summary, the link between increasing opportunity cost and the law of diminishing returns lies in the fact that both highlight the consequences of resource allocation decisions. The diminishing returns in the production process contribute to the rising opportunity costs associated with allocating resources to different activities, emphasizing the trade-offs inherent in economic decision-making
My brother would understand this example best, b/c he does both. He hunts for his own food and he's caught rabbit for us. I think he used a gun though. I can't even imagine being in anything but Scenario F, but I understand the lesson.
How can we relate his explanation to the fact that opportunity cost increases as you reallocate resources to produce one good that was better suited to produce the original good. Isn't this a more theoretical and relevant explanation?
The Marginal Rate of Transformation (MRT) is a fundamental economic concept that captures the relationship between the production of two goods along the production possibilities frontier (PPF). Defined as the slope of the PPF at a specific point, the MRT signifies the rate at which one good must be foregone to produce an additional unit of another good while maintaining a constant level of total output. The MRT is intrinsically tied to the concept of opportunity cost. As an economy or individual moves along the PPF, the MRT quantifies the opportunity cost associated with reallocating resources from the production of one good to another. A steeper MRT indicates a higher opportunity cost, suggesting that sacrificing more units of one good is necessary to obtain additional units of the other. Graphically, the MRT is represented by the slope of the PPF. A constant MRT suggests that resources are perfectly adaptable between the two goods, whereas an increasing MRT aligns with the law of diminishing marginal rate of transformation. This law posits that, in practical scenarios, the opportunity cost rises as more units of a good are produced, reflecting a diminishing efficiency in resource allocation. Efficiency in resource allocation and production choices is a paramount concern in economics, and the MRT plays a pivotal role in achieving this goal. Economies aim to operate at points where the MRT aligns with societal preferences, ensuring that resources are allocated optimally to maximize overall well-being. By understanding the Marginal Rate of Transformation, individuals and societies can make informed decisions regarding trade-offs and resource allocation, ultimately contributing to efficient and effective economic systems.
Until the development of the rifle and we no longer have to move along the production possibilities frontier of old and a new production possibilities frontier begins
hi khan academy by the way love your videos. I really would love your help with this question how about I say laptops & Cellphones. what would be the opportunity cost if I increased the production of laptops from 5 to 10
The opportunity cost is the value of the next best alternative that must be forgone when a decision is made to allocate resources to a particular option. In this case, if you increase the production of laptops from 5 to 10, you'll need to consider what you're giving up, or the opportunity cost. Let's say you have limited resources, and you were initially using those resources to produce 5 laptops. If you decide to increase the production to 10 laptops, the opportunity cost would be the production of the next best alternative that you are now forgoing. For example, if your resources could have been used to produce cellphones, the opportunity cost of increasing laptop production could be the number of cellphones you could have produced with the same resources. In summary, the opportunity cost of increasing the production of laptops from 5 to 10 is the potential production of the next best alternative, which in this case could be cellphones or any other product that could have been produced with the same resources.
Looking for a way to stay focused and centered while studying for exams? Say hello to Zena Meditation! Our channel provides a perfect mix of soothing meditation tracks and calming study music to help you stay in the zone and improve your concentration. With 0 subscribers, we're the best-kept secret to help you ace your exams. So why not give us a try? Subscribe today and let Zena Meditation be your study buddy. Your mind (and GPA) will thank you!
Ok, thanks a lot Mike i just wasted 2 minutes researching nothingness, 2 minutes that shall never be returned.. i hope you can sleep at night, no, i hope you can live with yourself for what you have done to me! I only hope others don't fall into your trap.
So, we see in both extremes-complete focus on rabbits and complete focus on berries-that there is a larger expenditure of effort required. One could hit the “sweet spot” and maximize the square in that curve, and switch between 2 and 3 rabbits a day, to get 240 and 180 berries a day, averaging to 2.5 rabbits a day, 420 berries a day. Such is better than 2.5 rabbits a day with no berries, or 300 berries a day with no rabbits.
And so, as he was discussing slope at the end, it seems necessary to find the point on the curve at which the slope is exactly -1. At that point, the opportunity cost in both scenarios would be the same. (Right?)
lol
the rabbit that's been hanging out with you - he's been asking for it
Lol
😂
Meanwhile here I'm sad about the 🐇
It’s been 10 years how’s your econ degree
"Hes been asking for it"
exactly... though i imagine the cute bunnies being eaten slowly after time O-O
"the rabbit that has been hanging out with me. well, he's been asking for it" LOL ahaha
I wish he and Robb would've been my Consumer Economics teacher. The one I had wasn't even 1/20 as clear about it as they are. I liked her as a person though.
I got a B in Consumer Economics and I think she was being nice to give it to me. I didn't understand Consumer Economics very well after I graduated. I didn't understand it very well until after I met Robb. I didn't know that wealthy people can almost entirely avoid paying federal taxes by using tax shelters until after I met him.
This is a great model to change the way of thinking towards prioritizing worker tasks properly. Everything that I want workers to accomplish removes them from accomplishing another thing that I want done, which is opportunity cost in a nutshell. Priorities really are very important.
You are helping me through out my economics course, and im portuguese, you are really good teaching, thanks!
haha squirrels. this is the most insane one of these videos i've watched, he really got into that rabbit hunting story
Actually this video is more funny than most videos that are intended to be comedy
Instablaster.
Great tutorial! Very informative and concepts are explained in a basic manner. At the same time, very entertaining. Kudos!
The rabbit wants to hang out with me...how cute is this.. hahaha!
I'm a student from Indonesia and i love watching video here, ^^
graduated by now?
I laughed so hard when he said squirrels
Incredible way of explaining
A level economics right here guys
can pretty much do the course before even taking one lesson
start my economics course in 6 weeks
Think i've got this nailed :)
Lol exactly what im doing
Sir Your concept of rabbit and berries is fine...
wow just had a class today and i didn't even understand anything bc I'm new to ECON, but you explained it real good plus your other videos that continues for this example I've watched all of them and thank you so much for explaining this i get the idea, but a little confused on how to set up the graph and how would i know how to set up the RABBITS on the Y axis or X axis and for the BERRIES,
+math bone i don't think it would matter. I usually choose by the units. The 10s and 100s i usually put on the y axis. But i don't know I could be wrong :) have always worked for me though.
From sri lanka ❤❤
It can synthesise protein, but it needs amino acids to do that, which have to come from an external source.
This video got subliminally dark real quick 😂
lol
lol the way he explains and his examples makes me laugh X 3
rabbit playing with your spear : D
good video
Thanks I manage to finish my assignment thanks to this video.
wiser words than this have never been said before
Thank you so much for such a clear and simple explanation!
thank you
thanx for the lesson
the software you're using is awesome !
which member of the team does these narrations/lessons?
Imaging garnering the trust of a wild rabbit to the point that he just hangs around you in the wilderness as you look for berries. Imagine sitting under a tree with this little rabbit friend and watching the sunset together. Imagine killing him. You monster.
Is increasing opportunity cost linked to the law of diminishing returns?
yes. although you might already have got your answer.
Yes, increasing opportunity cost is linked to the law of diminishing returns in economics. Both concepts revolve around the allocation of resources and the consequences of making choices in production and resource utilization.
The law of diminishing returns, specifically applied to production processes, asserts that as additional units of a variable input are added to a fixed quantity of other inputs, the marginal product of the variable input will eventually decrease. In simpler terms, the efficiency of adding more of a particular input diminishes over time, and it may even lead to negative returns. This law is particularly relevant in the short run, where some factors of production are fixed.
Now, when we consider the production possibilities frontier (PPF) and the concept of increasing opportunity cost, we observe a connection. The PPF illustrates the various combinations of goods and services an economy can produce with its given resources. As a society or firm decides to allocate more resources to produce one particular good or service over another, the opportunity cost of producing additional units of the chosen good increases. This is due to the fact that resources are not infinitely adaptable, and as they are shifted from one activity to another, the foregone opportunities become more valuable.
In summary, the link between increasing opportunity cost and the law of diminishing returns lies in the fact that both highlight the consequences of resource allocation decisions. The diminishing returns in the production process contribute to the rising opportunity costs associated with allocating resources to different activities, emphasizing the trade-offs inherent in economic decision-making
Excellent!!!!!!!!
My brother would understand this example best, b/c he does both. He hunts for his own food and he's caught rabbit for us. I think he used a gun though.
I can't even imagine being in anything but Scenario F, but I understand the lesson.
Are there any videos on investing/stock trading?
That 5th rabbit is Bugs Bunny
@xKurogashi lots of finance videos already made, though i dont know about stock trading
You're the best!
How can we relate his explanation to the fact that opportunity cost increases as you reallocate resources to produce one good that was better suited to produce the original good. Isn't this a more theoretical and relevant explanation?
more about The Marginal Rate of Transformation please
The Marginal Rate of Transformation (MRT) is a fundamental economic concept that captures the relationship between the production of two goods along the production possibilities frontier (PPF). Defined as the slope of the PPF at a specific point, the MRT signifies the rate at which one good must be foregone to produce an additional unit of another good while maintaining a constant level of total output.
The MRT is intrinsically tied to the concept of opportunity cost. As an economy or individual moves along the PPF, the MRT quantifies the opportunity cost associated with reallocating resources from the production of one good to another. A steeper MRT indicates a higher opportunity cost, suggesting that sacrificing more units of one good is necessary to obtain additional units of the other.
Graphically, the MRT is represented by the slope of the PPF. A constant MRT suggests that resources are perfectly adaptable between the two goods, whereas an increasing MRT aligns with the law of diminishing marginal rate of transformation. This law posits that, in practical scenarios, the opportunity cost rises as more units of a good are produced, reflecting a diminishing efficiency in resource allocation.
Efficiency in resource allocation and production choices is a paramount concern in economics, and the MRT plays a pivotal role in achieving this goal. Economies aim to operate at points where the MRT aligns with societal preferences, ensuring that resources are allocated optimally to maximize overall well-being. By understanding the Marginal Rate of Transformation, individuals and societies can make informed decisions regarding trade-offs and resource allocation, ultimately contributing to efficient and effective economic systems.
Until the development of the rifle and we no longer have to move along the production possibilities frontier of old and a new production possibilities frontier begins
Great
It doesn't make sense to me. Why is giving up more alternatives an increase in opportunity cost?
How does this connect with Comparative Advantage? I'm so lost
hi khan academy by the way love your videos. I really would love your help with this question how about I say laptops & Cellphones. what would be the opportunity cost if I increased the production of laptops from 5 to 10
The opportunity cost is the value of the next best alternative that must be forgone when a decision is made to allocate resources to a particular option. In this case, if you increase the production of laptops from 5 to 10, you'll need to consider what you're giving up, or the opportunity cost.
Let's say you have limited resources, and you were initially using those resources to produce 5 laptops. If you decide to increase the production to 10 laptops, the opportunity cost would be the production of the next best alternative that you are now forgoing.
For example, if your resources could have been used to produce cellphones, the opportunity cost of increasing laptop production could be the number of cellphones you could have produced with the same resources.
In summary, the opportunity cost of increasing the production of laptops from 5 to 10 is the potential production of the next best alternative, which in this case could be cellphones or any other product that could have been produced with the same resources.
3:18
I love you man
Now We all know Khan would exchange a rabbt for a squirrel...
Looking for a way to stay focused and centered while studying for exams? Say hello to Zena Meditation! Our channel provides a perfect mix of soothing meditation tracks and calming study music to help you stay in the zone and improve your concentration. With 0 subscribers, we're the best-kept secret to help you ace your exams. So why not give us a try? Subscribe today and let Zena Meditation be your study buddy. Your mind (and GPA) will thank you!
Half speed is really funny in this one
"per unit rabbit" lol
lmao
awesome :)
When you said squirrel in this video it sounded like "Square Rule" hahaha, I started thinking about math for a second.
The slower rabbit lol
3:16 LOL hahahaha
Ok, thanks a lot Mike i just wasted 2 minutes researching nothingness, 2 minutes that shall never be returned.. i hope you can sleep at night, no, i hope you can live with yourself for what you have done to me! I only hope others don't fall into your trap.
2+2=5
that meant you got high paid and you don't even want to take a course? real smart!!!
I am fine with 4 Rabbits and 100 berries.
ppf assumes no technological advancement
berries?
Yes! Especially when u work in multiple production facility as a production manager and above....JERK!!
Notes
So, we see in both extremes-complete focus on rabbits and complete focus on berries-that there is a larger expenditure of effort required. One could hit the “sweet spot” and maximize the square in that curve, and switch between 2 and 3 rabbits a day, to get 240 and 180 berries a day, averaging to 2.5 rabbits a day, 420 berries a day. Such is better than 2.5 rabbits a day with no berries, or 300 berries a day with no rabbits.
And so, as he was discussing slope at the end, it seems necessary to find the point on the curve at which the slope is exactly -1. At that point, the opportunity cost in both scenarios would be the same. (Right?)
SQUARRELS
Don't hurt rabbits. Can't we do a PPC that doesn't involve violence to animals?
Poor rabbit.
Rabbit Killer! :-D
Rabbit that likes to hangout with you
_you're literally stepping on berries, you're not eating the berries that are right next to you because you're so obsessed with _*_eating rabbits_*
I'd be going for the rabbit with weapons last :-/
why does this sound like Dj Vlad's voice?
I'm sure the rabbit didn't ask for it
dont starve, berries or rabbits
If the idea of slope is foreign to you---you MIGHT be in the wrong video lol
khan academy > Chuck Norris
Vegans, back off, the rabbit was asking for it.
Yo lolololooll
First!
mmm i feel like eating a rabbit...
Good afternoon. This is a sad video i don’t like eating buns. I love bunnies and bunnies should not be eaten. Cows are ok.
So can you apply this in real life? students of the academy?
hahaha
2024😢
vegetarians ftw :-D
NOT FIRST!!
because you're so obsessed with, with eating rabbits
ew that must be gross to step on berries lol i would be all like turn this into jamba juice
HAhahaha
thank you