What marginal benefit equals marginal cost means in economic terms

This video goes over the classic equation in economics MB=MC. The video explains what it means, and how we can get to it with three different examples.
Basically we care about efficiency. If marginal benefit is not equal to marginal cost then something is going wrong in the problem. Either our budget ran short or the firm is over/under producing. By looking at the context of the problem we can figure out what is going wrong and why marginal benefit is not equal to marginal cost within this context. It is also possible that market failures are occurring which is covered in another video.
More information on this topic can be found at www.freeeconhel...

[@wrjazziel]

the way you explain, very smoothly and clear, makes me finally understand it!.. thank you

[@JJJJ-so2vi]

thanks!! I'm studying for korean university entrance exam, and I got great help from this video.

[@halatamer3190]

Can you tell me why the marginal benefit bigger that the marginal cost before the efficiency point 🥺 I have an exam after 2 days and can't understand it. Thanks in advance

[@yueningchang5254]

OMG I love ur voice. I literally fell in love with ur voice

[@FreeEconHelp]

Wow! Thanks

[@erinrisch6950]

oh I get it. I previously didn't understand why you wouldn't want MB to be more than MC. Makes sense now! Thanks!

[@tonysun720]

Thank you very much for the wonderful explanation!
I have a little question: shouldn't this MB=MC be an efficient outcome instead of optimal?

[@ibeasy6]

theyre synonyms

[@golcese]

You're a good teacher. Keep it up.

[@pholmes411]

Thanks for a great explanation. You really make it easy to understand. Keep up the great work you're doing.

[@eddycoello81]

Thank you so much you made it so simple to understand the concept. :)

[@thabelomphaka]

Thank you so much for this video,I have been struggling to understand this concept.
I wanted to ask if when marginal cost=marginal benefit,does that mean allocative and productive effective is achieved?

[@DragusCalliforous]

simple and to the point. Thank you.

[@ahwaaky]

thank you so much for this video, it is one of the video that explains both marginal cost and benefits...

[@RidovhonaTsanwani]

What a nice and enlightening lesson, Keep it up man... Thank u.

[@po2943]

why marginal cost increases as quantity goes up? is that because of the scarcity of resources?

[@kanitakademi9358]

What happens if the marginal benefit curve and marginal cost curve do not intersect?

[@hyacintheebula835]

woow thank you sooo much, I've got it now

[@drugzzzzzzz]

it's 2023 april and still watching it

[@matomaaa]

is the price equal to market price, which also equals to marginal revenue?

[@brusslee1814]

what's the diference between marginal revenue and marginal benefit? (graph wise)

[@zacktronelectrify]

Thank you so much for this video!

[@FreeEconHelp]

Awesome! Glad it could help.

[@srirachasponsorship6265]

thx i got a test tmr

[@amjadessa1088]

Why would be marginal benefit decreasing over time while I’m having profit from it?

[@ndumisolushaba2403]

Amjad Essa
Marginal benefit has nothing to do with production because it's all about preference
The more limited the good is the higher the demand it has and the more people are willing to pay for an additional unit of that good
Also the limited good has more value to you because the chances of you getting twice are slim that's why the marginal benefit is decreasing as the production of that good increases

[@johnellzebulun998]

Great vid man!

[@lynnearivera5955]

Why does the price start at the top?

[@FreeEconHelp]

Just the way I like to do it.

[@lynnearivera5955]

Free Econ Help okay so it doesn’t matter where it starts on the axis?

[@lisamishima8778]

thanks

[@kundasam4173]

wouldn't you want your benefits greater than your cost though?

[@FreeEconHelp]

+Eb Sambou Yes! and the maximum net benefits will be obtained when marginal benefit equal marginal cost (with all assumptions holding)

[@AAA11546]

+Free Econ Help How come the maximum benefit will be obtained when MB = MC?

[@VirtualCurry]

YES! This pissed me off. I was told that the optimal benefit occurs when MB = MC....wtf.... HOW?

[@FreeEconHelp]

@Tomas and Sing, if MBMC then you are producing too little and can increase net benefit by creating more.

[@AAA11546]

THANKS!

[@WHATISUTUBE]

Very nice, thanks

[@Jaypark2love]

I'm still fucking confused

[@AAA11546]

Thank you!

[@HardeepSIngh-bu2zn]

That was good.

[@idevicz]

amazing! thank you!

[@Boom1990man]

thanks helped a lot :)

[@diadam6449]

only 4 mit i understood what i was looking for more 30 mit

[@hunterrush3264]

thx~
it helps a lot :D

[@SimpleStrawberry]

i love you.

[@w3ird00d3]

thaiyoli

[@pickblaze9920]

I searched up mb mc (mrbeast minecraft) and got this lmao

[@johnellzebulun998]

Heres a hug for those thumb downers.

[@tobiasashiwa8898]

sounds like a frog

[@RaidTNK]

axeeeeez lol