Marginal Analysis (Microecon.)

"The money they receive is the price, called the marginal revenue..." (College introductory economics level.)

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[Pa2nzer4elli]

I got some language problems, thus i somehow don´t get it : y do marginal costs grow when increasing the production??!!

I guess the answer is to be found @ 1:21 to 1:23

Can anybody explain it to me?

[leearnold]

Answer: "Diminishing returns" or "decreasing returns" over the SHORT RUN: because (one or more) of the short-run production factors (i.e., land, raw materials, labor, capital,) is usually limited. That finally puts a brake on the "output per additional unit" (marginal product) of the other factors.

Over the LONG RUN, it doesn't necessarily apply: you can build a bigger factory; new innovations give increasing returns to scale, etc.

[Mike1977a1]

Nice but there is no Matter energy transformed into a customer output. There should be no yellow arrow right of the center!

[leearnold]

What about bread and butter, or automobiles?

[Mike1977a1]

But they are products already produced!

Im just being picky, maybe it does takes energy to create adverts to market the goods!

[leearnold]

I used yellow for matter AND/OR energy. One or the other, or both. Bread and automobiles are matter. (And bread is transformed back into energy (partly) when you eat it.) For times when we want to separate matter from energy in the same flow, we could switch to orange for one of them. See the Eco-Alphabet video, or the Waste symbol video.

[TheIamravi]

awsomeeeeeeeeeeee i never ever understand before this video why mc>mr...thznxxx 4 making this..

[tigercat00]

Thank you for making this video. The format is amazing, and it helped me a lot!

[goosevenfy]

This, like all of leearnold's videos, is a masterpiece of intelligent exposition. It strips a sophisticated concept to its elemental simplicity.