Dal I’ve got my Econ exam in 1 hour and genuinely just wanna say that you’ve helped so much to make me understand these concepts. U r the most helpful guy on this platform !!!
Thanks alot for this video after completing theory of firm topic i watched this video to make thus topic more stronger and clear. 17/06/2024 Monday 05:23PM
I thought predatory pricing was when firms charge a price below AVC and make a temporary loss to drive out competition. This point doesn't coincide with revenue maximisation.
You're correct. That's the only thing wrong in this video. It's just that predatory pricing doesn't have a precise definition. Any time you charge a lower price to kick out competition it can denoted as predatory pricing.
Really love your videos, Sir! Your passion for economics is contagious! You explain everything in such a comprehensible manner, which really helps me get a solid grasp on the concepts. Thanks a lot for the amazing content!
Great videos, thank you so much. I just had a question. I was reading the IB Economics textbook by Cambridge and it says Growth maximization benefits both managers and shareholders, but in the video, you say Principle agent problem can also happen in growth maximization (9:19). And both these seem contradictory and making me confused. Any ideas??
principle agent problem is between the owner/ceo and the managers, shareholders will benefit from growth but the growth will be limited by imperfect information
I'm lost. Right of MC=MR, Point of profit max is just as bad as the left? Surely if MR > MC then that's a very good thing for the firm as it contributes to TR - TC
Yes MR > MC is good as you said but at the point (like any point on the MR curve to the left of the MR =MC point) means there's more quantity we can exploit meaning each extra unit will bring in more revenue then costs. Imagine you were at around the top of MR curve your costs are e.g. say you had a T shirt business which cost £20 to make and the price your selling at is £50, yes your making a profit (£30) but would you stop there knowing you can make even more profit if you e.g. sell a t shirt for a bit less, let's say £40 now (hence you've moved down the MR curve, but still before the point MR=MC) and your costs remain constant and are still £20 your still making profit if that makes sense ?
@@samizarroug2358 That's an excellent response, but surely all businesses would aim for the highest price meaning increasing profits, regardless of quantity otherwise that would be sales maximisation
@@JFoxyYT The physical Area of MR= MC proves that is where when drawing the box you will gain the highest amounts of supernormal profits compared to any other position
That's not what allocative efficiency is, P=MC because price is society's measure of the relative worth of a product at the margin or its marginal benefit.
Obviously, shareholders in the business will be happy with receiving profits and therefore dividends. However, they are losing out on the absolute MAXIMUM profit they could be receiving if the company were to instead profit maximise only. Would this be a correct assumption?
It basically means that a firm will have a varying level of the quality of their goods/services. So one customer may receive a bad quality product and one a good quality product. This makes it hard for firms to standardise the quality of their product as the quality of their goods/services varies so much.
This lady giving me the course doesn't understand what she is explaining herself and if I show her my understanding, she'll fail me. being a student is hard. Thank you though
thank your for existing
fr
Just went from about to fail to getting 96%...this guy needs a trophy
ye I'm sure u getting 96%
Jhoot bolo .... Baar baar jhoot bolo
@@umerjawwad6085 😂😂😂😂😂
how long did it take
You're right
His persparity is unmatched, he is deemed dangerous in any realm of economcis, truly the goat.
This made things so easy..I was starting to give up on economics👌🏾
Where's the econplusfade at?
Dal I’ve got my Econ exam in 1 hour and genuinely just wanna say that you’ve helped so much to make me understand these concepts. U r the most helpful guy on this platform !!!
how'd it go
@@dydx8407 He got me an A 🐐
@@ertuspenta only guy ever to respond to that question
did u do practice papers too?
@@rheaaletta ofc he did u can't skip that step mate
Got an exam in about 15 hours. Lord willing it will go well.
How was it?
@@MrDanMasterfr I be panicking
@@MrDanMaster 75% grade. thank God. dude is a lifesaver. 😆🔥
Critical 12 mins in my economics studies, l have never understood like this. My pleasure
Got My Micro Test tomorrow and thought i was screwed, still probably am but can definitely clutch a C or B now
Same, hopefully
What did u get
@@bw8750 what did u get
never understood something better in my life wow i feel like my eyes have been opened
Man is single handedly saving my grade
Much needed
we have A LEVEL tomorrow
swear down cuz?
This may be the clearest explanation of sacrificing I’ve seen on youtube😼
thank you dal, for posting your video on the 96 year and one month anniversary of the reichstag fire
amazing way to condense such a difficult topic, thankyou again!
The God has spoken
Thank you so much for this! You’ve detailed a lot of evaluation and extended theory which I need to work on at the moment - again, thank you!
Thanks alot for this video after completing theory of firm topic i watched this video to make thus topic more stronger and clear.
17/06/2024 Monday 05:23PM
I thought predatory pricing was when firms charge a price below AVC and make a temporary loss to drive out competition. This point doesn't coincide with revenue maximisation.
Literally thought the same, I think he meant limit pricing
You're correct. That's the only thing wrong in this video. It's just that predatory pricing doesn't have a precise definition. Any time you charge a lower price to kick out competition it can denoted as predatory pricing.
Limit pricing is AC = AR.
Predatory pricing is charging lower than AC (ATC) but higher than average variable cost (AVC)
Really love your videos, Sir! Your passion for economics is contagious! You explain everything in such a comprehensible manner, which really helps me get a solid grasp on the concepts. Thanks a lot for the amazing content!
Absolutely SMASHING VIDEO ECON
hullo big boy do some work now ples
@@georgebrand9325 Excuse me enough of that you runt
@@na.a8646 NO SHUTUP
@@georgebrand9325 oooo big MAN
@@na.a8646 so what grade did you get?
Econplusdal you are an absolute star, thank you so much for your help!
Great videos, thank you so much.
I just had a question. I was reading the IB Economics textbook by Cambridge and it says Growth maximization benefits both managers and shareholders, but in the video, you say Principle agent problem can also happen in growth maximization (9:19). And both these seem contradictory and making me confused. Any ideas??
principle agent problem is between the owner/ceo and the managers, shareholders will benefit from growth but the growth will be limited by imperfect information
Saved my ass for real, mid sems in three hours. Thank you so much for doing this.
Econdal mate you are the economics goat
who let dal cook ❤🔥❤🔥❤🔥
Thank you so much for your detailed videos, that you get across so clearly and passionately. Much appreciated!!
Legend as always, Dal.
thank you so much! this was very helpful!
the econ guru himself
My econ teachers are tosh, dis guy finna save my alevels
It's so concise. Thank you!
You literally saved my life
Huge thanks, Dal!
Very much helpful, thank you so much for all the guidance!!
What A guy!!!!!!!!! Amazing video
:)
dal u a real g
really good explanation! loved it
eco vikk >
Are firms which are revenue maximising productively efficient or was that just coincidental on the graph?
We love you sm much love xx ❤
i love you dal
you are the GOAT!
amazing amzing amazing
I find your videos very helpful, keep up the good work!
In dal we trust
u r a legend
Fantastic
I love you Mr Dal
Dude summarised 70 pages in 12 min
I'm lost. Right of MC=MR, Point of profit max is just as bad as the left? Surely if MR > MC then that's a very good thing for the firm as it contributes to TR - TC
Yes MR > MC is good as you said but at the point (like any point on the MR curve to the left of the MR =MC point) means there's more quantity we can exploit meaning each extra unit will bring in more revenue then costs. Imagine you were at around the top of MR curve your costs are e.g. say you had a T shirt business which cost £20 to make and the price your selling at is £50, yes your making a profit (£30) but would you stop there knowing you can make even more profit if you e.g. sell a t shirt for a bit less, let's say £40 now (hence you've moved down the MR curve, but still before the point MR=MC) and your costs remain constant and are still £20 your still making profit if that makes sense ?
@@samizarroug2358 That's an excellent response, but surely all businesses would aim for the highest price meaning increasing profits, regardless of quantity otherwise that would be sales maximisation
@@JFoxyYT The physical Area of MR= MC proves that is where when drawing the box you will gain the highest amounts of supernormal profits
compared to any other position
Thank you so much
Thank you!
Why is allocative efficiency not where AR=AC as this would be supplying maximum quantity to market without making a loss?
Because it would cause oversupply wouldnt it ? Therefor not being allocatively efficient.
@@lampofthestreet Please explain, also why does MC curve represent supply?
That's not what allocative efficiency is, P=MC because price is society's measure of the relative worth of a product at the margin or its marginal benefit.
@@supertrainmaniac Ok thank you
MC=MR=AC=AR shows economic efficiency
What is why and but?
Is it a coincidence that the revenue max point cuts at the lowest point on the AC curve?
yes, rev max is mr=0 (don't look at AC)
Went from U to a B this guy is just....
g check
Is anyone coming across a few of these videos for yr 1? (Aqa)
lol i dont want health and safety or to save the environment
I WANT MONEY
2:50
Obviously, shareholders in the business will be happy with receiving profits and therefore dividends. However, they are losing out on the absolute MAXIMUM profit they could be receiving if the company were to instead profit maximise only. Would this be a correct assumption?
The maximum profit is at MC=MR, you can’t get more profit than at that position
vibe check
Morning good
icl i love you
amazingngg
Whats firm hetereogeneity?
It basically means that a firm will have a varying level of the quality of their goods/services. So one customer may receive a bad quality product and one a good quality product. This makes it hard for firms to standardise the quality of their product as the quality of their goods/services varies so much.
ur the daddy dal love u
This lady giving me the course doesn't understand what she is explaining herself and if I show her my understanding, she'll fail me. being a student is hard. Thank you though
?