Perfect Competition and Profit Maximization

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  • Опубліковано 25 жов 2024

КОМЕНТАРІ • 105

  • @jordanjones7762
    @jordanjones7762 8 років тому +108

    Learned more in the first 60 seconds of this video then i did in about 5 weeks of lectures

    • @FreeEconHelp
      @FreeEconHelp  6 років тому +4

      Awesome, glad you found it useful!

    • @williamchan1613
      @williamchan1613 5 років тому

      Jordan Jones can’t agree anymore than this

  • @mouminiumaru8300
    @mouminiumaru8300 7 років тому +7

    This is the best video on this topic slow and nice explanation others come shout and teach themselves thanks professor

  • @pritampatra6271
    @pritampatra6271 2 роки тому +1

    Thanks for the video!!!!!!!! You explained the concept much better than my professor!!

  • @cocolopez7438
    @cocolopez7438 7 років тому +7

    Thank you so much!!! God bless you!! This makes more a lot of sense!!!

  • @bonkemeyile6886
    @bonkemeyile6886 12 років тому

    thanks very much sir....im doing economics at varsity, is a semester module but since I've got so much to do i don't have real much time to learn it in text book, i only read the slides so what i am trying to say your lessons are indeed the best.

  • @imabdirahman5790
    @imabdirahman5790 6 років тому +3

    Oh, Man You save my presentation today... Thanks 🙏🏽

  • @serinacat4781
    @serinacat4781 7 років тому +8

    very clear and well explained, thank you 😁✌️😆🎉

  • @riyadhbouddou6109
    @riyadhbouddou6109 5 років тому +1

    sir ! you are a brilliant, your 7 mn summarize a book, tank you

  • @JK-lk6mx
    @JK-lk6mx 3 роки тому

    Thank you for teaching me what my professor couldn't

  • @arnavsutodiya4468
    @arnavsutodiya4468 2 роки тому +1

    best explanation ever!!!!

  • @smackdownhotel8830
    @smackdownhotel8830 5 років тому +1

    You explained it 1,000,000 x better than my professor ever could 👌🏻

  • @darienashley5873
    @darienashley5873 9 років тому +10

    You are a living breathing Dank Meme. thank you

  • @aguyy222
    @aguyy222 9 років тому +8

    thanks a lot! very well explained

  • @AshishRayusa
    @AshishRayusa 2 роки тому

    Very good explanation !!!

  • @leKELSO
    @leKELSO 12 років тому +1

    this answered so many questions...thank you!!

  • @thitikornkkaewduangden6620
    @thitikornkkaewduangden6620 8 років тому

    thx so much this is ANS for final EXAM of mine

  • @UndergroundBill
    @UndergroundBill Рік тому

    Help me understand this pls , if you’re to the left, aren’t you earning more than revenue than the cost it takes to produce ? Shouldn’t you stick to the left of the diagram ?

  • @DreJr
    @DreJr 8 років тому

    This video was a great help. Thank you very much.

  • @prayassambhare4367
    @prayassambhare4367 5 років тому +1

    very very very nicely explained

  • @YutyrannusRex
    @YutyrannusRex 7 років тому

    Dude. More learned in 3 minutes than 4-5 lectures.

  • @luakii
    @luakii 2 роки тому

    my test is in 2 hours this is the best explanation I've seen so far althhough im still lost but ill get there

  • @necesarioshielamae1224
    @necesarioshielamae1224 4 роки тому

    Hi...how would you calculate TVC,TC,and PROFIT..if the given were only quantity and price and TFC..? Cost of materials is 50.80 per unit..and cost of labor is 51.10..

  • @Gello1982
    @Gello1982 9 років тому +1

    Thank you prof :) but what about the short run shut down point? when AR is less than average variable cost?

    • @abhisheksingh-tb4pw
      @abhisheksingh-tb4pw 7 років тому

      Gello that comes under supply curve of a perfect competition firm when price is equal to minimum of AVC

  • @leozarni9570
    @leozarni9570 3 роки тому

    What I don't understand is why would a firm continue moving to the right towards MR= MC? To the left, MR>MC so they are making supernormal profit which is a good thing right? They are generating more revenue for each additional output than the cost required to produce one more.

  • @Childrensmathes
    @Childrensmathes 4 роки тому

    Sir,maximisation of profit means high profit.At that point he will be getting high profit.But in the first diagram,mcost is less than mar.revenue.There he will be getting high profits.why can not he stop production at that point.can you explain this in simple terms if you have time,please.p siva rao,India.

  • @berkk1993
    @berkk1993 9 років тому +3

    just wonderful

  • @eshanair7054
    @eshanair7054 4 роки тому

    But if I sell it at a higher price than what it costs me to make, then would I not make more profit? Is it not better to produce at a point lower than the point where MC=MR?

  • @jorgefortunato9295
    @jorgefortunato9295 4 роки тому

    Perfect, many many thanks!

  • @abzs1589
    @abzs1589 5 років тому +1

    does this apply to monopoly and imperfect market structure?

    • @FreeEconHelp
      @FreeEconHelp  5 років тому +1

      No, only perfect competition. Check out the other videos for imperfect market structures and monopoly.

  • @thedazills1351
    @thedazills1351 5 років тому +1

    Would have been better if you used actual numbers for your examples...Because my graph doesn’t have an MR line

  • @SSS-sb3sw
    @SSS-sb3sw 7 років тому +1

    this is helpful! thank you

  • @azerothdss
    @azerothdss 4 роки тому

    I understand now. Thank you

  • @synthiatinni1129
    @synthiatinni1129 7 років тому +2

    @3.30 that line should be MC, right?

  • @rampilla32
    @rampilla32 7 років тому +1

    I liked your pen (pencil?)..... may i know its make.

  • @aseelibra4886
    @aseelibra4886 4 роки тому

    Thank you its very helpful

  • @mar8014
    @mar8014 11 років тому

    Also why does more output lead to the weird parabolla shaped marginal cost curve...could you explain it more, im not smart so i can't just understand it by myself.

  • @sohcheewei
    @sohcheewei 9 років тому +1

    A very helpful video!

  • @nathanielking6280
    @nathanielking6280 9 років тому

    I'm confused about the part at @1:30. How are you losing out on profit if your marginal revenue is greater than marginal cost?

    • @LouieNJ
      @LouieNJ 9 років тому +5

      Nathaniel King Because you can produce more, your profit isn't maximized. You aren't losing money per-say, you could just be making more(I think).

    • @irGuilty
      @irGuilty 7 років тому

      correct

  • @alvindaniswara8543
    @alvindaniswara8543 8 років тому

    just wondering, u mentioned about economic profit..does it mean the total economic profit?

    • @JAFFER3657
      @JAFFER3657 8 років тому

      Just use 'profit'. Term economic profit=Implicit+Explicit Cost. Which is whole another topic. And yes he is talking about total profit firm would get from the production.

    • @anishmanchanda4988
      @anishmanchanda4988 8 років тому

      Alvin Daniswara yeah economic profit or total economic profit means the same which equals implicit costs+explicit costs.
      However accounting profit only includes explicit costs.It does not consider implicit costs or opportunity costs.

  • @dianacanary2409
    @dianacanary2409 8 років тому

    thank you proff please do more videos short term runs

  • @asfionasiva1
    @asfionasiva1 11 років тому

    thank you this was very helpful !!

  • @md8300cn
    @md8300cn 9 років тому +2

    THANK YOU SO MUCH!!

  • @sandeshb7132
    @sandeshb7132 5 років тому

    can someone tell me how the profit is going to increase when the cost of producing it is increasing ??

  • @fabianhaule962
    @fabianhaule962 10 років тому

    thanx this is real so helpful

  • @oliyadworku5176
    @oliyadworku5176 2 роки тому

    What equilibrium means?

  • @rosiedan9740
    @rosiedan9740 9 років тому +1

    thank you so much sir! this was very helpful.

  • @dattatreyaswain8340
    @dattatreyaswain8340 Рік тому

    What about the second condition

  • @aman-vz1fq
    @aman-vz1fq 5 років тому

    Love from india i am class 12th student from cbse boards

  • @박한결-z4k
    @박한결-z4k 8 років тому

    Can someone please explain why MR = MC is where profit maximization occurs? I need help in this..

    • @matthiasstepancich
      @matthiasstepancich 8 років тому +4

      Because each time you produce a new unit, if MR>MC, it means profits will go up and you should keep producing, and, if MR

    • @irGuilty
      @irGuilty 7 років тому

      When MC is less than MR, the price is higher than the cost productions, therefore will you be making profits. The more you increase production the more profit you will get until you reach the point where MR = MC. If you then continue to increase production after that point MC will be higher than MR, therefore it will cost more to make than you will receive for selling that product. Therefore the highest point of profit is where MR is equal to MC.

  • @justinjayanand6852
    @justinjayanand6852 Рік тому

    Sir can you give me example questions

  • @brandonbreton1453
    @brandonbreton1453 10 років тому +1

    thank you
    thank you
    thank you
    thank you

  • @Mustlight
    @Mustlight 2 роки тому

    Thanks a lot.

  • @ilonamuradova7786
    @ilonamuradova7786 9 років тому +1

    Great, thank you, helped a lot!

  • @TheWalkingsouls
    @TheWalkingsouls 11 років тому

    nice one. Thanks

  • @roznevynam
    @roznevynam 8 років тому

    THANK YOU MAN!!!

  • @eyerusalemkidane7595
    @eyerusalemkidane7595 7 років тому

    how ? price is low so loss profit ! if selling higher price d upper will be profit

  • @lawclan8591
    @lawclan8591 6 років тому

    what pencil are you using

  • @buellerferris
    @buellerferris 11 років тому +1

    Because economic profit includes opportunity cost. If you could have produced one more unit and made a profit on it but didn't, you lose on opportunity costs. Make more sense now? :)

  • @Rdot19
    @Rdot19 6 років тому +1

    Thanks man..✌

  • @drewduenas6699
    @drewduenas6699 4 роки тому

    Thank you

  • @harresyakubi2187
    @harresyakubi2187 12 років тому

    when is this firm pareto optimal?

  • @aayansherwani
    @aayansherwani Рік тому

    helped alot.

  • @mz2011pk
    @mz2011pk 12 років тому +1

    thanks sir

  • @MrQuequowle
    @MrQuequowle 11 років тому

    Thank you !

  • @mar8014
    @mar8014 11 років тому

    I dont get why you are losing out on potential profit to the left of the point..since your revenue is more than cost it seems good because your making money and the less your revenue is than your cost, i would think the better...so i would think you are making the most profit for the next unit when you have the least number of units produced...

    • @yakimyakim3067
      @yakimyakim3067 8 років тому

      exactly

    • @gartyqam
      @gartyqam 6 років тому

      shutyo dumb ass niga up

    • @kip99283
      @kip99283 6 років тому

      If u go left side u will decrease production and lose the profit

  • @narakusdemon.88
    @narakusdemon.88 12 років тому

    Thanks so much!

  • @planbeplanner
    @planbeplanner 4 роки тому

    Good

  • @jammiboi1
    @jammiboi1 11 років тому

    You sound so much like doug from the hangover!

  • @khadizaaktar4595
    @khadizaaktar4595 6 років тому

    thanks a lot

  • @feellikereal3d81
    @feellikereal3d81 6 років тому

    Background sound is poor...

  • @jorgefortunato9295
    @jorgefortunato9295 4 роки тому

    I saved my life

  • @trisha8110
    @trisha8110 7 років тому

    THANKS

  • @krj2009
    @krj2009 7 років тому +2

    There is not enough information given to answer this question.

  • @mdc1802
    @mdc1802 5 років тому

    "As far back as I can remember I always wanted to be a gangster." I'm so glad Ray Liotta is doing economics videos now.
    ua-cam.com/video/_vUUdRsDgVA/v-deo.html

  • @naya2276
    @naya2276 7 років тому

    thankyouuuuuuuuuuuuuuuuuuuuuuuuuuu

  • @MeMe-iv4ld
    @MeMe-iv4ld 5 років тому +2

    Nice pen

  • @makemymarket1772
    @makemymarket1772 2 роки тому

    Mc = Mr , Mc = Mr , Mc=Mr …..

  • @luakii
    @luakii 2 роки тому

    im gonna cry

  • @jonakchetia
    @jonakchetia 12 років тому

    Thank you

  • @luakii
    @luakii 2 роки тому

    thank you