What marginal benefit equals marginal cost means in economic terms

Рет қаралды 154,369

13 жыл бұрын

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.freeeconhelp.com/2011/10/w...

Пікірлер: 55

@pholmes411 10 жыл бұрын

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

@wrjazziel Жыл бұрын

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

@DragusCalliforous 9 жыл бұрын

simple and to the point. Thank you.

@eddycoello81 7 жыл бұрын

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

@RidovhonaTsanwani 11 жыл бұрын

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

@JJJJ-so2vi 2 жыл бұрын

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

@halatamer3190 2 жыл бұрын

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

@ahwaaky 12 жыл бұрын

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

@golcese 11 жыл бұрын

You're a good teacher. Keep it up.

@erinrisch6950 7 жыл бұрын

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

@hyacintheebula835 9 жыл бұрын

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

@johnellzebulun998 8 жыл бұрын

Great vid man!

@yueningchang5254 5 жыл бұрын

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

@FreeEconHelp 5 жыл бұрын

Wow! Thanks

@brusslee1814 8 жыл бұрын

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

@WHATISUTUBE 12 жыл бұрын

Very nice, thanks

@AAA11546 8 жыл бұрын

Thank you!

@zacktronelectrify 6 жыл бұрын

Thank you so much for this video!

@FreeEconHelp 6 жыл бұрын

Awesome! Glad it could help.

@idevicz 11 жыл бұрын

amazing! thank you!

@Boom1990man 10 жыл бұрын

thanks helped a lot :)

@HardeepSIngh-bu2zn 9 жыл бұрын

That was good.

@lisamishima8778 9 жыл бұрын

thanks

@tonysun720 4 жыл бұрын

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 Жыл бұрын

theyre synonyms

@hunterrush3264 11 жыл бұрын

thx~ it helps a lot :D

@matomaaa 4 жыл бұрын

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

@kanitakademi9358 4 жыл бұрын

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

@srirachasponsorship6265 6 жыл бұрын

thx i got a test tmr

@thabelomphaka 4 ай бұрын

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?

@SimpleStrawberry 8 жыл бұрын

i love you.

@drugzzzzzzz Жыл бұрын

it's 2023 april and still watching it

@po2943 Жыл бұрын

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

@amjadessa1088 6 жыл бұрын

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

@ndumisolushaba2403 6 жыл бұрын

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