In general I agree with your comments, BUT! This is a very simplified version of the world and intended to be an introduction. The other thing we would need to know is labor and how labor would us the associated capital. The point is diminishing marginal returns of capital... it decreases as we add more capital.
Really good video sir. But I wanted to understand the behavior of the marginal product of capital with reference to the law of variable proportion (short run). I read that in stage 1 the marginal product of capital is negative but I couldn't really understand why and how. Could you please add a video or a comment which explains that, thank you!
From this, can I get deduce anything normative? For example, how much capital should I invest in if I wanted to get the best amount of output for my money? Because I suppose we wouldn't find the absolute max (slope = 0), but instead aim for all points 1 or lower? Or what else would we need to know (budget constraints? Other constraints/variables? Other factors?) Or is it a general rule of thumb that we should stay around the slope being 1 or >1 in order to best maximize our investments/spending?
Great video...But please can you tell me why this happens why the increased capital contribute less and less to the output..basically why this DMPC works?????
loving economics after watching your tutorials !! :)
it's best way to learn economics, u r so intelligent, thank u so much!
Good luck on your exam!
thankyou! ayem exm tmrow morning and this vid is very helping me :)
In general I agree with your comments, BUT! This is a very simplified version of the world and intended to be an introduction. The other thing we would need to know is labor and how labor would us the associated capital. The point is diminishing marginal returns of capital... it decreases as we add more capital.
Really good video sir. But I wanted to understand the behavior of the marginal product of capital with reference to the law of variable proportion (short run). I read that in stage 1 the marginal product of capital is negative but I couldn't really understand why and how. Could you please add a video or a comment which explains that, thank you!
You are terrific, nice teacher.
thank you so much, i have an exam after tomorrow ! you have been so helpful
how did it go?
@@wack... I don't even remember it because I never needed it in my life after 🤣🤣 Glad that I'm still alive and replying to a comment of 10 years ago
best explanation ever
Thanks buddy !I was confused but now it's all good 😊
Sir, what is the difference between marginal product of capital and marginal productivity of capital? Thanks
From this, can I get deduce anything normative? For example, how much capital should I invest in if I wanted to get the best amount of output for my money? Because I suppose we wouldn't find the absolute max (slope = 0), but instead aim for all points 1 or lower? Or what else would we need to know (budget constraints? Other constraints/variables? Other factors?) Or is it a general rule of thumb that we should stay around the slope being 1 or >1 in order to best maximize our investments/spending?
10 years later and I'm still relying on this to finish my homework 30 minutes before it's due at midnight
Great video...But please can you tell me why this happens why the increased capital contribute less and less to the output..basically why this DMPC works?????
What are the forces that shape average levels of capital productivity???
very nice..
nice video!!
But how do you measure capital in an economy?
why do some sites call it MPC and some MPK?
probably due to the “c” variable often used to represent cost.
there is basic difference between the concept of marginal production and marginal productivity..... pardon me...
perfac explanatin sir thanku
Good Luck on your exam!! Make sure you like MyBookSucks on FaceBook (see link in video) it will help me get the word about about the free videos.
well no fucking shit buddy. way to entirely avoid any of the work with functions