Cost Minimization

[@tanishbhasin3316]

You are becoming the reason for me to understand HAL R.VARIAN

[@KatherineSilzCarson]

I am glad this video was helpful for you, Tanish. Thank you for watching!

[@emreakkaya1569]

I’m gonna pass my microeconomics course thanks to your videos. Thank you for your all effort. Please keep going to upload :)

[@KatherineSilzCarson]

Well, I hope you do (or did) pass, Emre. Thank you for watching!

[@martingorunov1458]

I do not comment often but this vid is exactly what I needed and is also amazing. Thank you!

[@KatherineSilzCarson]

Martin - thank you for your comment, and thank you for watching!

[@AngelicaPerfection7]

thank you for all of your videos-as someone taking micro right now i find it very helpful and coincise please continue to do so thank you again

[@KatherineSilzCarson]

+Angelica13579sp Thank you for your comment. I am glad you are finding them to be helpful.

[@halitmetin6423]

please keep going to upload more videos we really need you

[@KatherineSilzCarson]

Thank you, Halit, for watching! I am probably going to do a series of macroeconomics videos in the spring. Let me know if you have any requests!

[@halochampion342]

at 12:16, why is the denominator 9(x^2) instead of 9?

[@KatherineSilzCarson]

If you go back to about 11:56, you will see that the cost equation is Cost = w1x + w2(y/9x). Note that I have left the subscripts off the x for simplicity. When you take the derivative of this function with respect to x, you need to use the rule for the derivative of functions with exponents for both terms. The exponent rule says that if you have a function like x^n, the derivative is n*x^(n-1). So you move the exponent down and make it the coefficient, and then decrease the exponent by one. So for the first part, the derivative of w1x, or w1*x^1, is just 1*w1*x^(1-1) = w1*x^0 = w1. In the second piece, since x is in the denominator, its exponent is -1. So we could rewrite the second piece of the cost equation as w2*y*9x^(-1). Applying the rule for the derivative of functions with exponents gives us (-1)*y*9*x(-1-1) = -y*9*x^(-2) = -9y/(x^2) for the derivative. Hope this helps. Also hope it's not so late as to be totally worthless to you. Thank you for watching!

[@halochampion342]

Katherine Silz-Carson I really appreciate you clarifying, I guess I was just overthinking the problem. It’s definitely still very useful, thanks very much

[@awurama2380]

Very easy to follow. Thank you

[@KatherineSilzCarson]

Thank you for watching, Arurama!

[@aigulzhaparova12]

I cant thank you enough💕💕💕

[@KatherineSilzCarson]

Thank you for watching!

[@yadhawbaznath2052]

+Katherine Silz-Carson, your videos are amazing! They save me an incredible amount of time and I can't thank you enough. Will you be making videos on the rest of producer theory? (for topics such as "Cost Curves".) Thanks again!

[@KatherineSilzCarson]

+Yadhaw Baznath Yes! The cost curve video will be posted later this week. Thanks for asking!

[@PJWOODS]

Thank you so much

[@KatherineSilzCarson]

Thank you for watching!