Marginal Benefits and Marginal Costs

Economics is about choices, about trade-offs. In this lecture, I introduce three important concepts that underpin rational decision-making in neoclassical economics: opportunity costs, marginal benefits, and marginal costs. With these concepts, we can understand important ideas such as the Law of Diminishing Marginal Utility, the Law of Increasing Marginal Cost, and the concept of optimal scale (a.k.a. the “When to Stop” Rule).

[@judithfever1358]

I have an economics final next week and I have been struggling with this concept all year! This simple video explained it SO well and I am so ready for this final! Thank you so much!!

[@linwenrr2649]

a very clear explanation, thank you very much

[@epshakusalani2797]

Well explained sir thank you 👍🏻❤

[@malondrajefferson2070]

thank you so much!

[@leosteeds3481]

I hoped you might say something about the specific relevance to ecological economics. As I understand, the applicability of neoclassical techniques such as marginal analysis is itself a controversial topic within the field.

[@JohnDoe-kq2nc]

I also hoped so, as well.

[@nursofiyahkhodijah3788]

So, marginal cost is equivalent to total utility?

[@teddysikaona-rp2no]

zzz,,
labour contraits

[@hamzahemouzal94]

It seems like 99% of this video is a pure recitation from "principles of economy" by george mankiw

[@AuroraYao07]

True, I read his book and am confused so I come to this video and find that he's basically repeating the content of the book lol