Thank you thank you thank you! This part of the chapter has been so confusing to me, no one has explained this clearer. You are an amazing human being.
The explanations were so precise ! This has to be the best marginal cost video on the internet for me .( Ive checked other ones). U deserve way more views too
The quality and brevity of your content is superb. I really liked how you linked MPL to MC. I never thought of that, it is a new insight for me. It even makes more sense now when looking at Macroeconomics topics where markups drives a wedge between factor prices and marginal cost and how it impacts labor share in an economy. Thank you, please keep making videos.
That's so nice C Maks! I feel so appreciated because of your comment and I am inspired to do more videos. Thanks for the encouragement, I hope that ace your exams :)
Oh that's an idea! I haven't looked at those models in ages- I remember especially the Heckscher-Ohlin model was fun. I have a little newborn atm so am time poor but will put it on my list of things to do.
Hi. I undestand MC's shape in short run, cause capital (cost) is fixed, but in long run all costs are variable costs, so why Long-Run MC curve has same shape as Short-Run MC ?
Hi Nurbek. How's this... Usually we discuss LRAC curve as U shaped, so it goes from decreasing to increasing - like a bowl shape - the lower envelope of the SRAC curves. Well... if you believe this, then you must also accept that for the area that LRAC is decreasing, the LRMC is beneath the LRAC, and where the LRAC is increasing the LRMC must be above the LRAC. LRMC curve intersects LRAC curve at the minimum of LRAC. I go through this logic here, as it relates to the SR curves, but it's the same logic: th-cam.com/video/-fhd938oKIo/w-d-xo.html. So our shape of our LRMC curve is then linked to the reasons why our LRAC decreases and then increases! We usually talk about as due to economies of scale or diseconomies of scale. Actually I think wikipedia is pretty good on this on why we get economies of scale / diseconomies of scale, though i didn't read it very carefully: en.wikipedia.org/wiki/Diseconomies_of_scale; en.wikipedia.org/wiki/Economies_of_scale. One thing to note is that the LRMC is flatter than the SRMC curve (so not as steeper increase in MC as we increase quantity), because we have more flexibility in our choice of inputs (as you say, our inputs are variable) so we can choose the most cost effective way of producing the marginal unit. I have taught courses where this is not clear in the text or diagrams, and I think it's because it's treated as a finer point, and so text books skip over it, but it's something to note... the LRMC and SRMC don't have exactly the same shape, just similar. I hope that helps?!
Thank you thank you thank you! This part of the chapter has been so confusing to me, no one has explained this clearer. You are an amazing human being.
The explanations were so precise ! This has to be the best marginal cost video on the internet for me .( Ive checked other ones). U deserve way more views too
That's so nice thanks! I think about how to make the videos a lot and sometimes I get it right! Good luck with your study :)
The quality and brevity of your content is superb. I really liked how you linked MPL to MC. I never thought of that, it is a new insight for me. It even makes more sense now when looking at Macroeconomics topics where markups drives a wedge between factor prices and marginal cost and how it impacts labor share in an economy. Thank you, please keep making videos.
Thanks for the lovely comment dv89112, sounds like you're thinking about things really well! :) keep it up!
Thank you so much. In such a short period of time you have described it so perfectly.
You're welcome! So glad to help! Thanks for the comment :)
Very well explanation but so fast however I appreciate it and I’m happy that I’m Among the luckiest people who watch this video
You’re so sweet! So happy that the video helped! Sorry it was so fast I get too excited and I rush! I will think of this next time 🙏🙃 🤔
This video helped a lot. Keep making more and soon you will get the recognition that you deserve!!!
That's so nice C Maks! I feel so appreciated because of your comment and I am inspired to do more videos. Thanks for the encouragement, I hope that ace your exams :)
Thank you sooooo much Miss! You saved my life today
I'm so glad! Good luck with your studies Annie!! :) :)
Best explanation i ever got
Nice! Thanks so much for the comment, good luck with your study 😊😊
Very useful. I got stuck with a bad non understandable book on this topic. But this video helped me in getting through it. Thank you.
Haha yes I know these books! Good luck with your studies! :)
Excellent explanation. Thank you.
Thanks so much for your comment I really appreciate it! I'm glad the video helped!
thankyou for such a nice n simple explanation
Most welcome 😊 Good luck with your study!
Thank u for such a awesome explanation.
So nice of you to say! Good luck with your study!
Thanks 😊
Nice explaination
Most welcome 😊 Thanks for the comment!
Thank you
Welcome! Good luck with your study!
Great explanation. Thank you ^^
Will you post some content on international economics in the future?
Oh that's an idea! I haven't looked at those models in ages- I remember especially the Heckscher-Ohlin model was fun. I have a little newborn atm so am time poor but will put it on my list of things to do.
Thank you very much!!
Thank-you Yulia for the comment! All of the best with your studies!
Amazing video 😇thank you so much
You're so nice Star Twinkle! I hope you ace your exams :) :)
Hi. I undestand MC's shape in short run, cause capital (cost) is fixed, but in long run all costs are variable costs, so why Long-Run MC curve has same shape as Short-Run MC ?
Hi Nurbek. How's this... Usually we discuss LRAC curve as U shaped, so it goes from decreasing to increasing - like a bowl shape - the lower envelope of the SRAC curves. Well... if you believe this, then you must also accept that for the area that LRAC is decreasing, the LRMC is beneath the LRAC, and where the LRAC is increasing the LRMC must be above the LRAC. LRMC curve intersects LRAC curve at the minimum of LRAC. I go through this logic here, as it relates to the SR curves, but it's the same logic: th-cam.com/video/-fhd938oKIo/w-d-xo.html. So our shape of our LRMC curve is then linked to the reasons why our LRAC decreases and then increases! We usually talk about as due to economies of scale or diseconomies of scale. Actually I think wikipedia is pretty good on this on why we get economies of scale / diseconomies of scale, though i didn't read it very carefully: en.wikipedia.org/wiki/Diseconomies_of_scale; en.wikipedia.org/wiki/Economies_of_scale. One thing to note is that the LRMC is flatter than the SRMC curve (so not as steeper increase in MC as we increase quantity), because we have more flexibility in our choice of inputs (as you say, our inputs are variable) so we can choose the most cost effective way of producing the marginal unit. I have taught courses where this is not clear in the text or diagrams, and I think it's because it's treated as a finer point, and so text books skip over it, but it's something to note... the LRMC and SRMC don't have exactly the same shape, just similar. I hope that helps?!
@@econhelp_official It's much clearer to me now, especially when you said, that LRMC is flatter, it makes sence. Thank you very much!
Exent......it helped me a lot...sister
Thank-you for the comment! I'm so glad the video helped I hope you do well in your studies!
Tysm
Thanks for the comment, good luck with your studies :) (fyi I didn't know what that meant and now I learnt a new acronym lol!)
@@econhelp_official lol I borrowed this one from my friends 😂.