Managerial Economics 4.3: Cost Minimization

[@cartilo2619]

Straight to the point and easy to follow, thank you.

[@uama2397]

Hi there! Thank you for making this video. I'd like to ask you something. What happens to the isoquant and isocost when the prices of K and L increases?

[@sebastianwaiecon]

Assuming the target output is unchanged, the isoquant doesn't change, but you may have a new cost-minimizing point, and the new isocost will go through that point.

[@uama2397]

@@sebastianwaiecon Great, thank you for your kind answer!

[@wpr9313]

Very useful

[@kapitan2480]

i have a question what does the laborers do without kapital what kind of firm is this ?

[@lurdesrociodelahozmartinez4832]

Thanks 👏

[@WhomstIndustries-dy3jc]

Is this normally taught in Managerial Econ undergrad courses? This is intermediate micro at my uni so I thought the managerial Econ course for business majors would just be intro to micro.

[@sebastianwaiecon]

This particular content is designed for an MBA-level managerial economics course. It could appear at the undergraduate level, but probably in a less math-intensive form. When I cover this in intermediate micro I go a little deeper and use the Lagrange multiplier method.

[@marjorieampo584]

thanks

[@shineselorm2938]

Please are the 160 and 200 for the C arbitrary numbers ? And if yes will they be given in a question ?

[@sebastianwaiecon]

In the section (around 2:30) where I introduced isocosts, they were arbitrary. Later on, I showed how we would actually calculate the total cost once the minimum has been found.

[@enriquealarcon3077]

Thank you very much!

[@rishabhaditya9108]

How can del.K/del.L= Mpl/Mpk = MRTS as MPL is del.L/Del. Q& mpk is Del. K/Del. Q

[@disintegratev6951]

No idea

[@jasminechau6680]

I think you solved the TRS of the cobb douglas function incorrectly.

[@joaomanoelleite1768]

Thanks you saved my ass

[@coleguidrey1974]

Do it symbolically not using numbers

[@sumitshrestha9129]

Boring