7. Competition I

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  • Опубліковано 25 чер 2024
  • MIT 14.01 Principles of Microeconomics, Fall 2018
    Instructor: Prof. Jonathan Gruber
    View the complete course: ocw.mit.edu/14-01F18
    UA-cam Playlist: • MIT 14.01 Principles o...
    This lecture finishes the discussion about costs from Lecture 6, and then the instructor explains perfect competition and short-run profit maximization.
    License: Creative Commons BY-NC-SA
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КОМЕНТАРІ • 67

  • @skaslam5408
    @skaslam5408 3 роки тому +84

    These lectures are far better than some Netflix series

    • @caratinawaiters2590
      @caratinawaiters2590 Рік тому +1

      So true!

    • @georgen9755
      @georgen9755 10 місяців тому

      sk you never ever study MIT , clever fellow cheating nicely , your sister is working in MIT, sai ram engineering college, madha engineering college, Jerusalem engineering college and you are going to coaching class or tuition center ? This looks like your neighbours kitchen room ?? why the hell getting coaching from stupid MIT goons , always indulging in sexual abuse and ..............teaching sex ???

    • @user-ur6uw6vn9t
      @user-ur6uw6vn9t 23 дні тому

      Why are you stealing stolen comments?

  • @spartancocoman
    @spartancocoman 3 роки тому +100

    Th professor is absolutely brilliant, It's so much better than my microeconomics class

  • @unrulyastronomer6611
    @unrulyastronomer6611 3 роки тому +53

    This is a great series! Prof Gruber is hands down my favorite online economics teacher.
    I noticed an error (at 32:40) that viewers of this video might benefit from seeing corrected:
    Total profits at the profit-maximizing point (the point where q=3) is 35, not 45.
    Here's the math: P=R-C= (30q)-(10+5q^2) = (30*3)-(10+5*3^2)=(90)-(10+45)=90-55=35 not 45.
    So the discrete answer (P=35) is the same as the continuous answer (P=35) that was calculated at 40:05.

    • @logeshwaribabu1954
      @logeshwaribabu1954 2 роки тому

      can someone wxplain how he finds Marginal cost for each unit and can someone explain how the profit is negative 10 for the fourth unit?

    • @mercedesgomez8488
      @mercedesgomez8488 2 роки тому +2

      @@logeshwaribabu1954 It negatives because your max point is 30 so if you go produce one more unit, it would cost you 40 and the benefit would be just 30. So you will be losing 10

    • @logeshwaribabu1954
      @logeshwaribabu1954 2 роки тому +1

      @@mercedesgomez8488 thank you ❤️

    • @DavidRotin
      @DavidRotin 6 місяців тому

      I was so confused on how he got 45 and what discrete something something was lol

  • @debarpanmusib9844
    @debarpanmusib9844 3 роки тому +22

    Great course content, Thanks Professor Gruber, and MIT for making this possible!

  • @itz_ilyas19
    @itz_ilyas19 3 роки тому +10

    I never attend any regular class of economics but this lecture series helped me a lot to learn about how it works. . Thanks MIT and Professor Jonathan Gruber.

  • @jonny_gage
    @jonny_gage 4 місяці тому +2

    This is a good lecture and I'm going to watch it in VR!

  • @MajinXarris
    @MajinXarris 2 роки тому +3

    4:27 this one's straight out of theory of poker. The fact that you bet on the flop doesn't mean that you will have to pay to see a turn card if the odds aren't in your favour or someone else is betting heavy. You gotta let of your hand.

  • @deilacarolinacastillo3912
    @deilacarolinacastillo3912 Рік тому

    Min 24.35 The best teacher I could have. Never remove these courses

  • @ProWhitaker
    @ProWhitaker 3 роки тому +13

    Thanks for the video

    • @mitocw
      @mitocw  3 роки тому +19

      You're welcome :D

  • @krissp8712
    @krissp8712 3 роки тому +1

    14:00 yay for the last session of this course!

  • @ObsetanHurisa-hz1ej
    @ObsetanHurisa-hz1ej Рік тому

    Wonderful lecture

  • @RidinCountry
    @RidinCountry 3 роки тому

    Wonderful lecture!

  • @ryanhayes5475
    @ryanhayes5475 3 роки тому +1

    @6:10
    If Steve Perry can hit that B above middle C in "Don't Stop Believin," you're going.

  • @teachmetelugu7320
    @teachmetelugu7320 2 роки тому

    9:00 perfect competiiton conditions

  • @harshaagarwal206
    @harshaagarwal206 3 роки тому +3

    As far as I understood the math for calculating the profit at q=3, the cost function 5*3^2+10=55-90=35. I think that 45 is anyways is not the profit even if consider it discrete.

    • @logeshwaribabu1954
      @logeshwaribabu1954 2 роки тому

      can someone wxplain how he finds Marginal cost for each unit and can someone explain how the profit is negative 10 for the fourth unit?

    • @DavidRotin
      @DavidRotin 6 місяців тому

      90-55

  • @logeshwaribabu1954
    @logeshwaribabu1954 2 роки тому

    can someone wxplain how he finds Marginal cost for each unit and can someone explain how the profit is negative 10 for the fourth unit?

  • @libsby2573
    @libsby2573 2 роки тому

    What is positive competition?

  • @sahilkushwaha5864
    @sahilkushwaha5864 2 роки тому +1

    22:00 ❣️

  • @Ennxi
    @Ennxi 3 місяці тому

    sunk costs are well explained and easy, it s just you either get 100 or tickets omit everythin else

  • @libsby2573
    @libsby2573 2 роки тому

    What is explicit cost

  • @leogaussbell1622
    @leogaussbell1622 3 роки тому +3

    6:40 competition I

    • @libsby2573
      @libsby2573 2 роки тому

      Hi, what is positive competition?

  • @uditabhattacharya2824
    @uditabhattacharya2824 6 місяців тому

    28:08 till end as profits per unit needed for visualization DO LECTURE QUESTIONS FIRST

  • @pran-ker
    @pran-ker 2 роки тому +3

    What hpns if there are multiple opportunity costs?
    - Do we take average or
    - Highest opportunity cost, etc

    • @zyne8087
      @zyne8087 2 роки тому +3

      We take the highest opportunity cost

    • @yunusemreyazc6985
      @yunusemreyazc6985 Рік тому +2

      opportunity cost means the next BEST alternative you give up when you make a choice, so there can not be multiple opportunity costs.

  • @ichbinraghu
    @ichbinraghu Рік тому

    Small Correction - Subject is more on the Cost Function rather than Competition, can you rename to Cost Function series . Rest absolutely Sinc with my course .

  • @md.samiulalim158
    @md.samiulalim158 2 роки тому

    good

  • @zafrulsiddique
    @zafrulsiddique Рік тому

    How can a 45 degree demand curve have a constant elasticity of -1? He is confusing slope with elasticity.

  • @pranamihayaran
    @pranamihayaran Рік тому

    At 33:48, how is the marginal cost 40? Since MC = 10 + 5q^2, MC = 10 + 5*4*4 = 90.

    • @nabsungkar
      @nabsungkar 4 місяці тому

      Hi. The marginal cost is the derivative of cost so it would be 10q, hence for the quantity demanded 4, the marginal cost is 40. Hope it helps

  • @jpmcmullan8666
    @jpmcmullan8666 3 роки тому

    This guy is nuts, Journey is awesome

  • @zhuwenhao4852
    @zhuwenhao4852 2 роки тому +1

    the residual demand notion was wrongly explained. overall good lecture though.

  • @sitrakamatthieu
    @sitrakamatthieu 2 роки тому +2

    14:39 "Babe ...we need to go to Paris see the Eiffle Tower replicat market!"

  • @mertaliyigit3288
    @mertaliyigit3288 2 роки тому +1

    Sooo can somebody explain why they cant do the thing explained in 36:10 ? I'm curious and scared I wont find it in later videos

    • @suryavadlamani1896
      @suryavadlamani1896 2 роки тому +1

      This is cartel formation, in practice it definitely happens but the different members of the cartel may start undercutting each other by making deals separately with customers. The best example for this is oil exporting, the product is roughly the same, but oil exporting countries got together and made an organization OPEC to manipulate the price. The professor wanted to discuss this in later lectures I think.

  • @syazwaninorizam2226
    @syazwaninorizam2226 11 місяців тому

    I don’t understand much because of the language yet he’s better than my lecturer…

  • @lennon_richardson
    @lennon_richardson Рік тому

    🙋‍♂️If the marginal cost to produce the last unit equals the sales price, wouldn’t that unit be sold for zero profit?

    • @sriramsriram7631
      @sriramsriram7631 Рік тому

      Thats the limit like ceeling for how many units a firm should produce if you produce more you will be loosing money if you produces less you are missing the marginal revenue so that's the optimal level

    • @lennon_richardson
      @lennon_richardson Рік тому

      @@sriramsriram7631 I understand all that. My question is still unanswered.
      Say you produce 1000 units. If the cost to produce the last unit equal the sales price then the profit on that unit is zero, correct?. Wouldn’t it be better just to produce 999 units and make a slight profit on the last unit you produce?

    • @mooky3494
      @mooky3494 6 місяців тому

      @@lennon_richardson Just reading this. Thought Id give my intuition for it: You also do not lose any money by selling the thousandth unit. Total profit would be the exact same for 999 as for 1000 units. You merely sold one more item. So, mathematically, I do not really think it matters. Still, as a producer I would rather also sell the thousandth unit just because I then have higher sales numbers, one more consumer in contact with my goods, etc.

  • @MohdAbuNaiyan
    @MohdAbuNaiyan Рік тому +1

    Excellent course but the instructor should slow down we he talks. Regards

  • @shortsandquizzes1640
    @shortsandquizzes1640 Рік тому

    Zyakhala on loud speaker

  • @arinzechukwubuike
    @arinzechukwubuike 3 роки тому

    Sunk costs?

    • @ac9832
      @ac9832 3 роки тому +6

      Costs you have had that you can't get back. You should ignore these and only make decisions based on the future alternatives. He had two alternatives: 1, Go to the consert, something that was wortht 100$. 2, sell the tickets, something he should do if it becomes worth more then alternative 1 (100$+) Hope it helps :)

    • @vishavejeetsingh4193
      @vishavejeetsingh4193 3 роки тому +3

      Split milk

    • @muhammadsiddiqui2244
      @muhammadsiddiqui2244 3 роки тому +1

      Sunk Cost Fallacy is a very common logical fallacy people do. It is something very similar to passion or consistency. It is a logic which says that because I have spent on this so I will keep on doing it.

    • @ArunKumar-yb2jn
      @ArunKumar-yb2jn 2 роки тому

      @@vishavejeetsingh4193 No. It's spilt milk.

  • @MajinXarris
    @MajinXarris 2 роки тому +3

    23:30 Did he really call programmers slaves? Am I the only one hearing this

  • @awhimdhwani
    @awhimdhwani 2 роки тому

    His lectures are GRIPPING