I was having the hardest time trying to figure out how exactly marginal cost and revenue worked, but once you said derivatives it all started making sense. I think I've got it. Thanks so much!!
Correct me if I'm wrong, but in order to find the cost of the Nth product, can't we just find the cost of all products up to N then subtract n-1 to get the Nth cost... I think that's what he's saying here. Again, I haven't been paying attention in calc this semester so I may be wrong :)
@FrankiePoker Good catch. It's good for an estimate and more accurate with larger numbers, but if it's something that must be absolutely precise (ie something you'd use a derivative to find) then using the method in the video would be ideal.
We are interested in the addition to TC [i.e. C(x)] by producing the 401st unit (i.e. MC of the 401st) and not the addition to TC by producing the 400th unit (MC of the 400th). You're mistaking the MC of the 401st unit for the MC of the 400th unit on the left side of your equation. Change it to C'(401) and you're good.
No wonder every university-level math class skips the "Applications to Economics" sections. Mathematicians suck at being economists. QED
:-)
varijanvagina 1 month ago
What math should i be taking undergrad for grad econ?
ICarnag3I 4 months ago
@ICarnag3I 1 to 2 years of calc
byropunch 4 months ago
@byropunch no linear, matrix, or real?
ICarnag3I 4 months ago
I was having the hardest time trying to figure out how exactly marginal cost and revenue worked, but once you said derivatives it all started making sense. I think I've got it. Thanks so much!!
mangaka08 4 months ago
nice handwriting!
afkpuz07 8 months ago
EXTREMELY HELPFUL THANK YOU VERY MUCH Pr.
vavavoom1991 1 year ago
Correct me if I'm wrong, but in order to find the cost of the Nth product, can't we just find the cost of all products up to N then subtract n-1 to get the Nth cost... I think that's what he's saying here. Again, I haven't been paying attention in calc this semester so I may be wrong :)
smpat04 1 year ago
@smpat04 That assumes a discrete distribution though?
FrankiePoker 4 months ago
@FrankiePoker Good catch. It's good for an estimate and more accurate with larger numbers, but if it's something that must be absolutely precise (ie something you'd use a derivative to find) then using the method in the video would be ideal.
smpat04 4 months ago
This video is a total F4IL.
We are interested in the addition to TC [i.e. C(x)] by producing the 401st unit (i.e. MC of the 401st) and not the addition to TC by producing the 400th unit (MC of the 400th). You're mistaking the MC of the 401st unit for the MC of the 400th unit on the left side of your equation. Change it to C'(401) and you're good.
No wonder every university-level math class skips the "Applications to Economics" sections. Mathematicians suck at being economists. QED
moonraker416 1 year ago
@moonraker416 the formula is designed to use the 400th unit as input to receive the 401st unit's marginal cost utilizing the 2nd derivative.
"Economists: Telling us tomorrow why events today were not what they predicted yesterday" QED.
smpat04 4 months ago