I don't understand the part where you got L=1/25k It's like you did magic L is supposed to be 2.5k or 5k
@EconomicsinManyLessons2 жыл бұрын
Let me simplify this in more detail: L^-0.5 = 5(K^-0.5) I raise both sides of the equation to the -2 power. On the left hand side of the equation, note that (L^-0.5)^-2 = L^(-0.5 x -2) = L^1 = L On the right hand side of the equation: [5(K^-0.5)]^-2 = (5^-2)(K^-0.5)^-2. Note that 5^-2 = 1/25 and (K^-0.5)^-2 = K^(-0.5 x -2) = K^1 = K. Putting this side together: (1/25)K. Overall, we get L = (1/25)K
@Kentucky_Fried_Man Жыл бұрын
@@EconomicsinManyLessons I got it, but using the multiplication rule for the powers was awesome
@user-ej6kj3rv1b Жыл бұрын
you rescued me from my math in econ exam. Thank you so much
@GascaPdCanal4 жыл бұрын
Thank you, greeting from Colombia.
@cmulz2372 Жыл бұрын
Are we multiplying by 5 because it’s the reciprocal of 1/5?
@mambojackson82453 жыл бұрын
You really helped me I was stuck Thankyou
@gjinkalla712124 күн бұрын
Does maximising output mean the same as maximising profit in this case?
@lyttiegrabamak15633 жыл бұрын
How did you get the -2 which raise to the power of both sides?
@bellomisquah91532 жыл бұрын
Exactly He did magic
@abegailmendez45693 ай бұрын
Why is it that if you solve it the other way around the results are not the same, i mean the isolated L or K
@justnothing10678 ай бұрын
I dont understand the part u multiplied only 1 side by 1/5. I mean K^0.5+L^0.5 can be multiplied by 1/5 too. Why did u left it??
@sarahakin023 жыл бұрын
how did you get -2 that you raise/ multiplied
@EconomicsinManyLessons3 жыл бұрын
I raise both sides by -2 because when you multiply the exponent on L and K, which is -0.5, by - 2 you are left with just L and K. For example, L^[(-0.5)(-2)] = L
@lobowatz52742 жыл бұрын
If the firm chose 50 L and 250 K, wouldn't the output be bigger at same costs (1'000)?
@tripledee44392 жыл бұрын
Theliz no
@minnaasia33716 ай бұрын
How does 0.5 cancel 0.5
@minnaasia33716 ай бұрын
The coefficients I mean
@vanshitaverma90953 жыл бұрын
Both output maximization and cost minimization leads to same input combination?
@benedictamanu15943 жыл бұрын
pls they have the same input combination rather
@arunkumarsabar79062 жыл бұрын
Why -2 Raised?sir
@justry_right97663 жыл бұрын
What does the lambda mean tho? I dont really get it. Please help me explain..
@EconomicsinManyLessons3 жыл бұрын
In this video, Lambda tells us how much output will increase by if the constant in the constraint was increased by 1-unit. In other words, the increase in output from spending an additional dollar on inputs.
@yeon95953 жыл бұрын
@@EconomicsinManyLessons what if the lambda is negative? What does it mean?
@-RayQuaZa Жыл бұрын
you beautiful man
@EconomicsinManyLessons Жыл бұрын
Thanks you for the comment!
@kittykhan75812 жыл бұрын
CES stands for
@EconomicsinManyLessons2 жыл бұрын
Constant Elasticity of Substitution: The elasticity of substitution stays constant along an isoquant.