Entry, Exit, and Supply Curves: Constant Costs
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- Опубліковано 1 лис 2024
- Some industries have a flat supply curve. These are called constant cost industries. Take domain name registration: to increase the supply of domain names, we must only increase the inputs by a negligible amount. That is why even as the Internet expands so rapidly, it still costs only about six or seven dollars to register a new domain name. By showing you how these industries respond to an increase in demand, we can explain why they are constant cost industries.
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Why did I find this playlist 3 hours before my exam. I cant believe I pay for uni when I get this for free. My teacher is vietnamese and I cant understand a word she says.
No idea how I would have passed the exam without you guys! Very thankful!
Congrats on passing!
-Roman
great explanation i am writting 0n the 9th hey!i wish myself all the best..Economics is not a childs play.
How do we have profit after Average Cost passes the Price? The point in which we make zero profit is when Total Revenue=TC (Price =Average Cost).
Profit =Quantity.(Price - Average Cost) so why would we have profit when we go from A to B, When Price is lower than Average Cost?
P.s: The price change from A to B could solve the problem of why firms would choose to change the quantity they produce but because the price is the same as cost in the lowest point (minimum) of Average Cost it is not a rational decision for firms to move past that point in production, hence explaining why the price stays the same.
Beautiful.
You have such a clear way of explaining difficult concepts...if I could I would subscribe 10 times :) Thank you!!
Great stuff but I have a question which I hope someone can enlighten me. In the case of the "increasing cost" industry (the preceding video chapter), there is no shifting of the demand curve to trace the industry supply curve... whereas in the "constant cost" industry (this current chapter), the demand and supply curves are shifted around to trace out the industry supply curve? Thank you.
THIS WAS SO GOOD.THANK YOU
Thank you so much! Great explanations!
Why is the marginal cost curve sloping upwards in a constant cost industry? Shouldn't the MC curve be flat since an additional unit costs the same as the previous unit to produce? I guess it doesn't change the fact there is still positive profit to be made when the price is above AC.
Thank you..
respect
Awesome videos! however, you forgot to explain the long run curve for an increasing costs industry! There is a video labelled as it however you don´t explain it in that video and then you move on to explaining the constant cost industry curve in the long run. Thank you
+Chanfleandote 7:54