Perfect Competition and Profit Maximization

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  • เผยแพร่เมื่อ 29 ต.ค. 2024

ความคิดเห็น • 105

  • @jordanjones7762
    @jordanjones7762 8 ปีที่แล้ว +108

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

    • @FreeEconHelp
      @FreeEconHelp  6 ปีที่แล้ว +4

      Awesome, glad you found it useful!

    • @williamchan1613
      @williamchan1613 5 ปีที่แล้ว

      Jordan Jones can’t agree anymore than this

  • @mouminiumaru8300
    @mouminiumaru8300 7 ปีที่แล้ว +7

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

  • @pritampatra6271
    @pritampatra6271 2 ปีที่แล้ว +1

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

  • @cocolopez7438
    @cocolopez7438 7 ปีที่แล้ว +7

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

  • @bonkemeyile6886
    @bonkemeyile6886 12 ปีที่แล้ว

    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.

  • @riyadhbouddou6109
    @riyadhbouddou6109 6 ปีที่แล้ว +1

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

  • @serinacat4781
    @serinacat4781 7 ปีที่แล้ว +8

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

  • @JK-lk6mx
    @JK-lk6mx 3 ปีที่แล้ว

    Thank you for teaching me what my professor couldn't

  • @imabdirahman5790
    @imabdirahman5790 6 ปีที่แล้ว +3

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

  • @smackdownhotel8830
    @smackdownhotel8830 5 ปีที่แล้ว +1

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

  • @arnavsutodiya4468
    @arnavsutodiya4468 2 ปีที่แล้ว +1

    best explanation ever!!!!

  • @darienashley5873
    @darienashley5873 9 ปีที่แล้ว +10

    You are a living breathing Dank Meme. thank you

    • @FreeEconHelp
      @FreeEconHelp  9 ปีที่แล้ว +8

      +Darien Ashley Thank you?

  • @aguyy222
    @aguyy222 9 ปีที่แล้ว +8

    thanks a lot! very well explained

  • @thitikornkkaewduangden6620
    @thitikornkkaewduangden6620 8 ปีที่แล้ว

    thx so much this is ANS for final EXAM of mine

  • @AshishRayusa
    @AshishRayusa 2 ปีที่แล้ว

    Very good explanation !!!

  • @luakii
    @luakii 2 ปีที่แล้ว

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

  • @leKELSO
    @leKELSO 12 ปีที่แล้ว +1

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

  • @YutyrannusRex
    @YutyrannusRex 7 ปีที่แล้ว

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

  • @prayassambhare4367
    @prayassambhare4367 5 ปีที่แล้ว +1

    very very very nicely explained

  • @DreJr
    @DreJr 8 ปีที่แล้ว

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

  • @UndergroundBill
    @UndergroundBill ปีที่แล้ว

    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 ?

  • @necesarioshielamae1224
    @necesarioshielamae1224 4 ปีที่แล้ว

    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..

  • @Childrensmathes
    @Childrensmathes 4 ปีที่แล้ว

    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 ปีที่แล้ว +3

    just wonderful

  • @eshanair7054
    @eshanair7054 4 ปีที่แล้ว

    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 ปีที่แล้ว

    Perfect, many many thanks!

  • @leozarni9570
    @leozarni9570 3 ปีที่แล้ว

    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.

    • @ayamoukadem21
      @ayamoukadem21 ปีที่แล้ว

      exactly what I am thinking

  • @aman-vz1fq
    @aman-vz1fq 5 ปีที่แล้ว

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

  • @azerothdss
    @azerothdss 4 ปีที่แล้ว

    I understand now. Thank you

  • @aseelibra4886
    @aseelibra4886 4 ปีที่แล้ว

    Thank you its very helpful

  • @SSS-sb3sw
    @SSS-sb3sw 7 ปีที่แล้ว +1

    this is helpful! thank you

  • @rampilla32
    @rampilla32 7 ปีที่แล้ว +1

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

  • @abzs1589
    @abzs1589 5 ปีที่แล้ว +1

    does this apply to monopoly and imperfect market structure?

    • @FreeEconHelp
      @FreeEconHelp  5 ปีที่แล้ว +1

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

  • @Gello1982
    @Gello1982 9 ปีที่แล้ว +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 ปีที่แล้ว

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

  • @nathanielking6280
    @nathanielking6280 9 ปีที่แล้ว

    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 ปีที่แล้ว +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 ปีที่แล้ว

      correct

  • @md8300cn
    @md8300cn 9 ปีที่แล้ว +2

    THANK YOU SO MUCH!!

  • @thedazills1351
    @thedazills1351 5 ปีที่แล้ว +1

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

  • @brandonbreton1453
    @brandonbreton1453 10 ปีที่แล้ว +1

    thank you
    thank you
    thank you
    thank you

  • @Mustlight
    @Mustlight 2 ปีที่แล้ว

    Thanks a lot.

  • @dianacanary2409
    @dianacanary2409 8 ปีที่แล้ว

    thank you proff please do more videos short term runs

  • @synthiatinni1129
    @synthiatinni1129 7 ปีที่แล้ว +2

    @3.30 that line should be MC, right?

  • @drewduenas6699
    @drewduenas6699 4 ปีที่แล้ว

    Thank you

  • @mz2011pk
    @mz2011pk 12 ปีที่แล้ว +1

    thanks sir

  • @alvindaniswara8543
    @alvindaniswara8543 8 ปีที่แล้ว

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

    • @JAFFER3657
      @JAFFER3657 8 ปีที่แล้ว

      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 ปีที่แล้ว

      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.

  • @asfionasiva1
    @asfionasiva1 11 ปีที่แล้ว

    thank you this was very helpful !!

  • @fabianhaule962
    @fabianhaule962 10 ปีที่แล้ว

    thanx this is real so helpful

  • @rosiedan9740
    @rosiedan9740 9 ปีที่แล้ว +1

    thank you so much sir! this was very helpful.

  • @sandeshb7132
    @sandeshb7132 5 ปีที่แล้ว

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

  • @roznevynam
    @roznevynam 8 ปีที่แล้ว

    THANK YOU MAN!!!

  • @박한결-z4k
    @박한결-z4k 8 ปีที่แล้ว

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

    • @matthiasstepancich
      @matthiasstepancich 8 ปีที่แล้ว +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 ปีที่แล้ว

      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.

  • @aayansherwani
    @aayansherwani ปีที่แล้ว

    helped alot.

  • @MrQuequowle
    @MrQuequowle 11 ปีที่แล้ว

    Thank you !

  • @TheWalkingsouls
    @TheWalkingsouls 11 ปีที่แล้ว

    nice one. Thanks

  • @oliyadworku5176
    @oliyadworku5176 2 ปีที่แล้ว

    What equilibrium means?

  • @narakusdemon.88
    @narakusdemon.88 12 ปีที่แล้ว

    Thanks so much!

  • @sohcheewei
    @sohcheewei 9 ปีที่แล้ว +1

    A very helpful video!

  • @Rdot19
    @Rdot19 6 ปีที่แล้ว +1

    Thanks man..✌

  • @mar8014
    @mar8014 11 ปีที่แล้ว

    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.

  • @buellerferris
    @buellerferris 11 ปีที่แล้ว +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? :)

  • @eyerusalemkidane7595
    @eyerusalemkidane7595 7 ปีที่แล้ว

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

  • @khadizaaktar4595
    @khadizaaktar4595 6 ปีที่แล้ว

    thanks a lot

  • @dattatreyaswain8340
    @dattatreyaswain8340 ปีที่แล้ว

    What about the second condition

  • @justinjayanand6852
    @justinjayanand6852 ปีที่แล้ว

    Sir can you give me example questions

  • @ilonamuradova7786
    @ilonamuradova7786 9 ปีที่แล้ว +1

    Great, thank you, helped a lot!

  • @trisha8110
    @trisha8110 7 ปีที่แล้ว

    THANKS

  • @lawclan8591
    @lawclan8591 6 ปีที่แล้ว

    what pencil are you using

    • @FreeEconHelp
      @FreeEconHelp  6 ปีที่แล้ว +1

      Zebra M-402, it's awesome!

  • @planbeplanner
    @planbeplanner 4 ปีที่แล้ว

    Good

  • @jorgefortunato9295
    @jorgefortunato9295 4 ปีที่แล้ว

    I saved my life

  • @harresyakubi2187
    @harresyakubi2187 12 ปีที่แล้ว

    when is this firm pareto optimal?

  • @mar8014
    @mar8014 11 ปีที่แล้ว

    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 ปีที่แล้ว

      exactly

    • @gartyqam
      @gartyqam 6 ปีที่แล้ว

      shutyo dumb ass niga up

    • @kip99283
      @kip99283 6 ปีที่แล้ว

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

  • @jammiboi1
    @jammiboi1 11 ปีที่แล้ว

    You sound so much like doug from the hangover!

  • @naya2276
    @naya2276 7 ปีที่แล้ว

    thankyouuuuuuuuuuuuuuuuuuuuuuuuuuu

  • @mdc1802
    @mdc1802 5 ปีที่แล้ว

    "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.
    th-cam.com/video/_vUUdRsDgVA/w-d-xo.html

  • @feellikereal3d81
    @feellikereal3d81 6 ปีที่แล้ว

    Background sound is poor...

  • @MeMe-iv4ld
    @MeMe-iv4ld 5 ปีที่แล้ว +2

    Nice pen

  • @krj2009
    @krj2009 7 ปีที่แล้ว +2

    There is not enough information given to answer this question.

  • @makemymarket1772
    @makemymarket1772 2 ปีที่แล้ว

    Mc = Mr , Mc = Mr , Mc=Mr …..

  • @luakii
    @luakii 2 ปีที่แล้ว

    im gonna cry

  • @jonakchetia
    @jonakchetia 12 ปีที่แล้ว

    Thank you

  • @luakii
    @luakii 2 ปีที่แล้ว

    thank you