Marginal Utility

[@Immaturity]

Thanks. My god if my economics teacher would just show this video instead of going "uhm" for 60+ minutes, the time of my lectures could be cut in half. YOU ARE DOING GOD'S WORK MY FRIEND

[@heyitsmemarkokicko]

lmao my teacher uses all his videos.

[@bogaziciliceohaluk]

DUDE YOU HAVE TRANSLATED MY FEELİNGS EXACTLY... THE GUY CANT SPEAK AND HE JUST SAYS HIMMM IIIIII UHMMM FOR LİKE 2 HOURS AND SPEAKS FOR 10 MİNUTES smh.............

[@kmit9191]

this is mostly due to the fact you've already listened to it before in class, so your brain is not in a state of being bombarded with information. You're looking up this certain topic in order to understand something you've already encountered problems with.

[@rebeccacole6954]

@@kmit9191 That's a nice idealistic theory, but not necessarily true. I work in higher education and I've seen plenty of professors struggle to get their points across in a timely manner or coherent. I myself purposely am trying to avoid lecture based classes for this very reason. Many teachers and professors should not be in the positions that they are in or should really take another public speaking/speech class. I've been in a number of classes where an instructor struggled to get through the material they themselves were presenting through no fault of the students. Not to say all teachers are bad or that this is always the case BUT it's wrong to try to claim that it's because of that particular reason.

[@thuyduongtran7814]

So helpful! I learned more from this video than from my textbook (which makes everything overly complicated). Thank you!

[@jigishadebnath564]

hiii you are now in college isnt it?

[@thekaisernick]

@@jigishadebnath564 ✌ yes

[@Wndkdkkxokddokekkxkso]

Shes married now​@@jigishadebnath564

[@siddhantdeshmukh7120]

I notcied that you haven't monetiised any of your videos. This is no joke, given the amount of efforts which go into making such videos. You are making an impact in the field of education on a global level. God bless you

[@luca2348]

This video is way better than my textbook which promised to show us "less graphs and more plain English."

[@jorgianamaria]

Man I love you. I'd give up school and just simply watch all your vid.

[@rakhijha6834]

Insta id?

[@pajamasam-333]

I'm starting my undergraduate studies in Economics, and I had very similar questions and doubts as you do at first, so I thought I'd offer what perspective I've gained from about half a year or so of study. It's basically determined empirically, by looking at data about consumer behavior. It's obviously more complicated in real life because there are so many more decision factors, but a simple example would be to look a person with a $100 budget, and see how they choose to spend that money.

[@Anonymous-hw2cf]

The reason he spent the 5th dollar on the 60 was because the MU of fruit was 120 for two dollars. So the 4th and 5th dollar went towards that. If the 5th dollar went to the 50 than the MU would only be 110 in total.

[@kaypalmboom]

Mistermo716 Gefeliciteerd jij bent mijn vogel!

[@samueljackson689]

god bless you, you should make your own school or university you’d really make a huge difference in this world if you would

[@shockwave2477]

he already is

[@OjoRojo40]

You better save your last dollar for the dentist.

[@giancarlo3000]

Thank you for your explanation. My problem with economics is that it's not an exact science, yet it's considered as so because it's used to shape national policies. The fact that the most accepted theory of value is extremely subjective -can't be mathematically determined- is enough to tell me how economics as a pseudo science are actually not the proper way to conduct an real economic system. I've been studying some planned economy systems and they seem interesting. Let's see how it goes.

[@mrstevelentini]

The only reason I'm going to pass this exam is because of you. Thanks!

[@luneditz317]

Because of you that I learned and understood this topic the most! Thank you khan academy 🎉🎉🎉

[@nargizmammadova8753]

Can we say that cardinal utility offers a technique to measure the utility whereas ordinal utility introduces two bundles from which we can derive the utility of goods by standing to the preferences. I mean, let assume that we are given two bundles (x1;x2) and (y1;y2). If consumer prefers (x1;x2) rather than (y1;y2), we can come to the conclusion that utility of the preferred bundle is higher than the rejected one. In a word, in cardinal utility, the end result is a matter of numbers while in the ordinal utility the result depends on the preferences.

[@avichalnath4562]

beautifully understood your teaching process ....... the best learning platform KHANS ACADEMY

[@shahdehab4626]

كلمتان خفيفتان على اللسان ثقيلتان في الميزان حبيبتان إلى الرحمن سبحان الله وبحمده سبحان الله العظيم

[@shahdehab4626]

لعل القارئ يصلى على النبى عليه الصلاة والسلام فيزيدنى درجة و يزداد درجات

[@shahdehab4626]

1 - سبحان الله 2- الحمدلله 3- لا إله إلا الله 4- الله اكبر 5- لا حول ولا قوة إلا بالله 6- ربي اغفر لي 7- سبحان الله وبحمده 8- سبحان الله العظيم 9- اللهم نجني من عذابك يوم تبعث عبادك 10- اللهم صل وسلم على نبينا محمد.....

[@Acerola211]

Arghrghargh it always bothers me how concepts in economics doesn't seem completely tied down in reality! But thank you for the video, Khan, as usual. YOU ARE AN AMAZING HUMAN BEING!

[@Veganphobic]

sal.... my iPad is full of you. thank you for your service!

[@beckwilde]

"chocolated out" aha very informative. excellent video

[@noobmaster-dm7tu]

Utility is measured often with the help of the 'unit' 'Utils'.

[@diggahdan]

Minor correction: marginal utility is always positive, not zero or negative. In other words, having more of a good is assumed to always be a good thing. See the microeconomics "rule of non-satiation".

[@FXFXFXFX]

Daniel Paulk no, MU can be negative, but this level of economic analysis isn't used in the real world anyway. E.g. Consuming pizza until you have diabetes, each additional slice therefore actually kills you and would be calculated as negative marginal utility

[@musicballfun]

awesome! i finally understand comparisons are being made between two goods by looking at their marginal utility per price of respective good. something textbooks seemingly can't explain well!

[@jule90k]

you explained this concept extremely well, thank you so much!!! :)

[@Acerola211]

Case in point: Quantitative data is useless unless the qualitative data the numbers represent has real, concrete meaning.

[@katalyst552]

So tell me why my school specifically told me that they do not recommend Khan Academy as an external resource for Microecon..... LOL well here I am. Thanks!

[@khulekazulu1023]

YOU deserve 1000000000000 subscribers man!!!!!

[@Acerola211]

My problem with economists is theycompletely skipped the stage of observation. Early Greek astronomers noted the position of all the stars in the sky with such detail that they noticed that some stars moved in relation to the constellations - aka planetes, or "wonderers" for Greek. People then measured the exact position of those planets; this data allowed Newton to develop the law of universal gravitation. Economists seem to be at the stage where they think that "stars move from east to west."

[@kn1t30wl]

Kool a nice reminder to my stage one economics classes in uni.

[@Dhouhadhrifi]

this is incredibly good

[@pajamasam-333]

Comment pt3: in the end, it's not exact, and it never can be totally perfect in measuring satisfaction. But to use a metaphor my Econ101 professor used, Economics is like a map for understanding human/societal behavior. A map of your neighborhood, for example, does actually capture all the details of your 'hood. Rather, it highlights what's important: the roads and intersections and distances; and leaves out what's not: the curvature of the earth, buildings, number of lanes, etc.

[@Acerola211]

Actual observations of what primitive economies looked like suggest that economists are completely wrong about their assumptions about how trade works. "Debt: The First 5000 Years" lists some really interesting observations.

[@Corarii]

i wonder if we are all taking the same microecon class

[@88roro11]

when i took econ... my teacher was good at making simple thing way to complicated...

[@dougstephens7338]

Yeah the 4th and 5th dollar were spent on fruit because he could have spent the 4th dollar on the 40 utils of chocolate but that would leave him with one dollar (the 5th dollar) that he couldn't spend on fruit. So 60 > 40.

[@ayamoukadem21]

beauuuuuuutiful explanation

[@pianocover3658]

Is there anything he doesn't know too much about! Very Inspiring

[@alicemint1500]

thank you this was extremely useful, all the other vids on this topic just confused me more

[@noobmaster-dm7tu]

Just like many other economics theories, this concept too is nearly useless for practical purposes, because from where will I get my Marginal Utility statistics? Also, I do love economics though.

[@angeladavis254]

Thank you for breaking this down

[@khairulfaiz7398]

this is so helpful thnak you sir

[@UpscNexus]

Thank u so much sir for spreading this wonderful knowledge ❤

[@monCHERished]

this was very helpful thank you!! but pls differentiate total utility from marginal utility because it's kind of confusing :/

[@innanninna]

total utility is the sum of marginal utilities you get per bundle of good.ata? if my understanding serves me right

[@thedistributedexchangebloc7788]

Am I wrong in that when economics study utility, they only look at a single util unit, rather than multiple? If so, I am seeing there is incomplete in understanding value. Why not have multiple util types, which you can increase or decrease based on what is impacted?

[@manojsaikia4548]

I love economics

[@kroovyandcal]

Appetite Satiation Unit Points

[@Ken-tu5ip]

Marginal ... value is benefit is nominal, conceptual, accountable, ... you are arguing semantics

[@nefo706]

man I love you

[@jorgianamaria]

ikr!

[@الصوتالرخيم]

How does he knows all these things and knowledge!!!!!!!???

[@rumbidzailisah3390]

Well explained

[@jeseniarodriguez7555]

Thank you so much! I did not really understand until this video

[@innanninna]

bam you just answered my assignment thank you

[@eeshajavadekar9537]

thanks for making me love econ

[@numaniqbal2261]

Thankyou for such help

[@arnavparihar3137]

So useful Thanku very much.

[@AtifKhan09-l5s]

It's really good 👍👍

[@kawaii_hawaii222]

What about when you don’t consume the good immediately but instead safe/stock it up? Then the utility increment won’t decrease no?

[@lakshanalinammaudhoo426]

Good explanations

[@ans0]

Thank you so much I understand it very well ❤❤❤❤

[@deniseguerra4343]

God.. thank you for using english to explain this!!!

[@shadreckmusakabantu3047]

this is helpful

[@ryangarritty9761]

Many thanks - very useful.

[@tdren5304]

wouldn't it actually be 30 points for the fruit since its going per dollar so you'd actually just get all chocolate until your last dollar?

[@mdmuktaibnsattar6814]

nice lecture

[@GuilhermePottker]

it's surely tied with reality. think about a diamond and water. why is the diamond so much more expensive than water, even being the latter much more important for life? whoon earth would want to exchange all the water in the world for all the diamonds in the world? no one, but all this is explained though the concept of marginal utility. i may suggest you to search for the Austrian School, and particularly to study praxeology in order to better understand this all.

[@88roro11]

when i took econ... my teacher was good at making simple things complicated... like this.. if kahn was my teacher i would have understood utility in 12 minutes not 2 class sessions :P

[@Ken-tu5ip]

I would like you to talk about marginal benefits in a human being studying for A test with x time left before test expiration

[@pajamasam-333]

Comment Pt2: So when the consumer is down to his last $10, does spend that on Chocolate bars or on Fruit? If he spends it on Chocolate bars, then that tells me that he values chocolate bars more and therefore derives more utility from that additional chocolate bar than if he had bought an additional piece of fruit. Smooth this out over many different decisions, and you can make a "utility function," where the units of utility are not important so long as decisions are consistent along the curve

[@courage936]

Am i the only one who thinks that this video can be 3 minutes long instead of 12?

[@elormkh]

I have an assignment here, can you help me out? why is average utility always higher than marginal utility except for the first unit. Thanks

[@sonalirai7879]

I love economy

[@KeithKnightDontTreadonAnyone]

This was brilliant thank you so much ☺️

[@Mrsangelodimorte]

thanks for the help.

[@kousik_das]

We're getting 120 utility points for first pound of fruits, now with the increase of quantity the marginal utility is decreasing... By this way marginal utility for (1/2) pound of fruits should also be greater than 60... Isn't it?

[@spirituelconnexion]

Sal, I think your video contains an error in the last part of it. You used two Dollars to get 60 U/$ while each dollar on its own can get you 60 U/$. The fruits are more expansive but you already divided 120 by two. I may be wrong so this is more of a question that a critic. Other than that thank you for enlightening us :)

[@noahshowers3792]

This was helpful

[@AditeeArt]

Why did you spend 4 and 5 on the pound of fruit? After you spent the 4th dollar on half a pound of fruit at MU of 60, wouldn't the next highest MU be 50 for the fruit? So you would still have bought half a pound of fruit with the 5th dollar, but wouldn't that be for MU of 50?

[@gouravdutta1879]

Sir what if the customer's craving for fruit decreases as he goes on consuming chocolates? Would the utility values for fruit vary accordingly for every decrease in the utility of chocolates? Thank you!!

[@joesr31]

Quick question, for marginal utility curve, is there a logical explanation for why the gradient often decrease?

[@DishonoredGOD]

It's the law of diminishing marginal utility. You've probably figured it out now since its been 5 years.

[@joesr31]

@@DishonoredGOD yup haha, already graduated a year ago, thanks though

[@econbustutor2054]

This is a very interesting video; I also made a video where I have discussed the best way to answer economics in a school setting.

[@assil110]

I dont believe that marginal utility can be negative. Actually, owning a good or a service does not mean that we have to consume it (for instance, owning or buying many cookies does not necessarily imply that we will have to eat all of them). So, I think the lowest possible value of MU is zero. Why do we need to assume that rational individuals would literally consume the good or service if they know, ex ante, that it would harm them or decrease their satisfaction level !!! What about the preference propriety: "More is Better"???

[@209murtazabhatt6]

Nah…imagine overeating and getting sick , now you’re quite unsatisfied hence negative marginal utility…assumption based on the fact that you consume the good…its not about capital goods…

[@neilhamirkeshvala]

If "utils" is a unit of utility where people don't measure but have, now can you utilize this concept in real life?

[@vsh1998]

+Neil Keshvala You actually can't. Economists assume that satisfaction and utility is measurable, but it's really not because satisfaction is subjective. This is why Marginal Utility is said to "assume more and conclude less" as opposed to Ordinal Utility which "Assumes less and concludes more"

[@neilhamirkeshvala]

interesting...

[@Sarah1627]

You call it "Utils" ..

[@numaniqbal2261]

Thankyou

[@azankhan7385]

hindi ya urdu me b upload karein khan sahab

[@abdumajiduzb]

Thank you! That really helped me! ))

[@drallisimo34]

cool stuff!!!

[@nanukakiknadze9532]

10:47 are they both 60 points per dollar or does the 60 point for a fruit cost $2? I got a little confused there.

[@learningp8553]

How do you decide the value of the marginal utility if you dont have the total utility?

[@funksoulbrother]

11 mins in, wouldn't 2q choco be worth $2 instead of 1 (on your $5 spend?), you select 1, 2 and 3 quantities for your first 3 $, but that would $6 worth surely?

[@josephsalunday778]

Thank you for the video, but if I could ask something. I might be confused a bit. I understand the diminishing marginal utility. In the example, if you spent the last 2 remaining dollars on the the chocolate, wouldn’t that be 80 mu points (40 x $2). Which is more than 40 points in $2 worth of apples? Or am I thinking of it too much and missing the point? Lol

[@joeyrules316]

thanks that helped

[@subhashb6826]

For chocolate bars why it is not being divided by 2????

[@braidznplaitz]

totally love this

[@acho8387]

cardinal utility analysis makes completely 0 sense ... i'm sticking with ordinal utility

[@mikekenny1698]

So to make it clearer we can use the marginal utility to calculate the total utility?

[@kalathmipathiraja6292]

at 6:34 wouldnt the total utility be 120 + 120 + 100? because of the 100 being additional to it?

[@macross1515]

this video is incorrect. utility is not cardinal, it is ordinal Khan Academy

[@robbsan93]

Thanks alot, this was very helpful :)!

[@xenomann442]

1 pound of fruit cost $2, so he spent the 4th and 5th dollar on one pound of fruit.