6a. Marginal Rate of Substitution and Marginal Utility (with Calculus)

In this video, I use calculus to derive the relationship between marginal rate of substitution and the marginal utilities of the two goods.


Check out a description of my teaching activities here:

www.tonycookson.com/teaching

Check out a list of the videos in this series (organized by topic) here:

http://blog.thisyoungeconomist.com/p/learn-microeconomics.html

Category:

Education

Tags:

• marginal rate of substitution
• intermediate microeconomics
• consumer theory
• educational

[IGOTCREAM]

could you explain the differentiation? are you treating as a partial derivative?

[intromediateecon]

@IGOTCREAM There are partial derivatives and regular derivatives in the video.

df/dx is a regular derivative. At 0:39. I wrote it as a partial, but those d's should be standing up straight.

du/dx and du/dy (the marginal utilities) are partial derivatives, and they come in through the chain rule's total differentiation.

I hope that clarifies.

[renada89]

Really good explanation, but have you done anything about deriving Marginal Revenues?

[intromediateecon]

@renada89 Thanks! And, yes I have. That's video "29a" on my channel. It is under my "monopoly and imperfect competition playlist." You may find it more easily by going to my video web page (link in the description of this video).

[debomiralha]

I liked it...but would be nice if you used number to perform the diferentiation!It would be easier to understand!!but still great lecture!!

[intromediateecon]

@debomiralha Thanks for the suggestion. Given that you are the third one to request something like this in addition to what I have already done in the video, I'll put this request on my "to do" list.

[Visillis]

this makes everything a lot clearer! thanks from Belgium!

[publicanimal]

It makes more sense when I watch it on YouTube then when I see it in class.

[lotraven]

Thanks a lot.

[gillou800]

Hey, have you some videos for macroeconomics?

[PutaMadreheh]

Thank-you very much kind sir.

[macrocec]

of course you earned a thumbs uo buddy, great vid

[Dsarge21]

This guys smile before the videos start get me every time