Marginal cost & differential calculus | Applications of derivatives | AP Calculus AB | Khan Academy

In economics, the idea of marginal cost can be nicely captured with the derivative. Created by Sal Khan.
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AP Calculus AB on Khan Academy: Bill Scott uses Khan Academy to teach AP Calculus at Phillips Academy in Andover, Massachusetts, and heÕs part of the teaching team that helped develop Khan AcademyÕs AP lessons. Phillips Academy was one of the first schools to teach AP nearly 60 years ago.
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[@joseguzman-lux1198]

Wow, what a very useful video. I have learned so much, and I value this a lot. This video has taken cancer away from me. This video feed millions in Africa. This video, make me feel proud to be gay. Thank you.

[@emmanuelacosta4086]

I completely agree with this comment I feel like it has also gotten me through my most tough moments of my life. #Pray2k16

[@yyanooo]

this video cleared my skin

[@elladre137]

So that's how humor worked back in 2016

[@netad7771]

​@@elladre137Lol

[@janeyue7491]

I took Calculus I and II as an Accounting major and I couldn’t figure how to applied. Ty!

[@crashonthehumble]

Outstanding

[@Spacetime23]

what a beautiful explanation sir !! but what is implied by "on the margin"? where exactly is the margin and why we call it margin ??? could you please clarify on that... thanks a lot for your time and value

[@guilty_p01nt3r4]

Really a great explanation !
I have just a doubt, I didn't understand why the word "marginal" ?

[@salmakd3586]

Perfect explanation!! Thank you so much:)

[@kawrno5396]

I understand the graph. But my question is, with real life example, why should I introduce quadratic term in my total cost function? I understand the theory, but don't understand the application side. After certain point production cost increases more than probable quantity production, but how is that incorporated with quadratic part? I understand the answer of 'why', but don't know anything about 'how'.

[@ralphpagangpang9390]

Same question.

[@salmakd3586]

This is not a quadratic function. It's an exponential growth function.

[@ahnafkhan8115]

thanks! so practical

[@Finition1999]

Thanks a lot

[@rossfriedman6570]

So in order to do any type of cost accounting, whether it be basic or advanced, you must have historical data to work with, correct?

[@Splinter5k]

I really want orange juice

[@egyptianspaceodin1373]

at that point, I'd have to ask if its economically sound to be in the OJ business lol!

[@petterbillett972]

Why dosen't the cost go down with more quantity?

[@asfandyarmalik6438]

Avg cost may go down, he is drawing total cost which will always go up

[@yellowusbrickus4821]

@@asfandyarmalik6438 It actually refers to the cost per unit, not overall cost. The idea of "low hanging fruit" ie, it is easy to collect all the fruit dangling in front of you, but if you want to clean off the whole tree then you have to climb all the hard to reach branches which increases the cost per unit of output. If you think about this for a single factory, it may not work as such, though it definitely applies for agriculture where all the crops cannot be easily collected. If you think of the total supply pool as different businesses with unequal costs of production due to the resources at their disposal, some businesses only have the capacity to produce inefficiently and therefore they will only supply if the price they can get for their output exceeds the cost of production. Compare this to an efficient business who can produce for a much lower price; they will supply even if the price is a lot lower because they can produce with lower costs. For a supply curve, all the businesses in the market are being ranked in ascending order of production costs thus the higher prices correlate to a greater quantity supplied
note: If the supply curves moved to the right- increased quantity then that indicates that production for businesses is more efficient and thus they can provide greater amounts at the lower prices and also greater amounts at the higher prices

[@Bbehemothh]

This is the supplier cost curve

[@syakrikhalid]

this guy sounds like john mayer haha tq for the lesson

[@pusatkoryurek2228]

We Want to Turkish subtitles

[@Aoki-99]

Speak in Urdu or Hindi

[@elladre137]

why don't you speak in Paakantyi or Tunebo 🙏

[@user-ik1ux9ck5z]

What else do you want