Monopoly: Consumer Surplus, Producer Surplus, Deadweight Loss

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  • เผยแพร่เมื่อ 4 ธ.ค. 2024

ความคิดเห็น • 144

  • @laurenbenedict5574
    @laurenbenedict5574 4 ปีที่แล้ว +87

    thank you so much- i was about to cry 9 minutes ago, but now i think everything will be ok :)

  • @ramanathansundaram5811
    @ramanathansundaram5811 6 ปีที่แล้ว +51

    Dear Professor,
    This video is a gift for all who want to learn monopoly profit maximization, you did it in an easy and understandable way, now i can face my exam with ease.
    Thanks a lot :), keep doing such good work.

  • @EconomicsinManyLessons
    @EconomicsinManyLessons  9 ปีที่แล้ว +46

    To find where the demand curve crosses the x-axis, set P = 0 in the demand equation and solve for Q. For example, if P = 130 - 0.50Q, plug 0 in for P to get: 0 = 130 - 0.50Q. Now, solving for Q, we get 130 = 0.50Q, which simplifies to Q = 130/0.50 = 260.

  • @David-gk9lk
    @David-gk9lk หลายเดือนก่อน

    Thank you so much. Your videos are short and straight to the point.

  • @grivalodon
    @grivalodon ปีที่แล้ว +2

    Thanks for the videos Professor, you have really helped me understand stuff for my upcoming Microeconomics exam! One quick note: On the DWL calculation, the base of the DWL triangle is 110-40, not 110-90. So, the DWL turns out to be 70x8/2=280$. Other than that, great and informative vid as always!

  • @michellemiddleton5173
    @michellemiddleton5173 5 ปีที่แล้ว +6

    Thank you so much for such a clear and concise video. You've saved hours of frustration trying to learn from textbooks that offer no explanation

  • @sonofhell98
    @sonofhell98 2 ปีที่แล้ว +3

    This video is a life saver. Neither the textbook nor professor for my econ class would explain how to find the cs and ps but this video explained it super well 🙌🏽

  • @CoZedyret
    @CoZedyret 7 ปีที่แล้ว +6

    Thank you for a very thorough and understandable explanation. I have my exams tomorrow, and neither the text book nor the teacher found it worth mentioning how you find the point on the price axis that you need to calculate producer's surplus!

  • @jamesrumbelow5284
    @jamesrumbelow5284 4 ปีที่แล้ว +1

    My man you are a great human

  • @kacperzygmunt2644
    @kacperzygmunt2644 5 ปีที่แล้ว +3

    Mate, this is great I spend 4 hours looking how to use MC to find price and you are the first one that made understand it, cheers to you ☺ .

  • @몬알몬알
    @몬알몬알 10 หลายเดือนก่อน

    your video is better than my professor’s lecture😂 thank you

  • @abrahamzimba6722
    @abrahamzimba6722 3 ปีที่แล้ว +8

    I think you have messed the marginal revenue function , the slope of MR should be double the slope of demand function p=130+2q. hence the mr=130+10q

    • @niharikasrivastava2591
      @niharikasrivastava2591 3 ปีที่แล้ว +1

      Yes exactly!!!!!

    • @joshuaarenas8146
      @joshuaarenas8146 11 หลายเดือนก่อน

      He is not using 5, he is using 0.5, but he type it as ".5" (point five).

  • @bria13445
    @bria13445 10 ปีที่แล้ว +4

    Thank you very much. Your videos are very helpful especially before exams. You should have 1 million views.

  • @CarlosGutierrez-ox7gt
    @CarlosGutierrez-ox7gt 4 ปีที่แล้ว +48

    Who else is watching this while taking a final #Zoomuniversity

  • @reiyaranirama7526
    @reiyaranirama7526 3 ปีที่แล้ว +1

    Oh...ur vdos are such a Life savior...😂😂👍...

  • @AudreyChong-vl1gd
    @AudreyChong-vl1gd ปีที่แล้ว +4

    Hello!, how do you explain if the monopoly is efficient or inefficient using this graph as an example?
    Btw, super great video.. it is what i am looking for!! Thank you so much

    • @EconomicsinManyLessons
      @EconomicsinManyLessons  ปีที่แล้ว +1

      The efficient level of output occurs where the marginal cost curve intersects the demand curve. At this intersection, the good's price will equal marginal cost or p = mc. The monopolist's output is inefficient because it produces less than the efficient level of output, charging a price that exceeds marginal cosr.

  • @vincentanon9238
    @vincentanon9238 3 ปีที่แล้ว

    Thank you so much Sir, amazing video, I hope you have a great day

  • @gersonselema4506
    @gersonselema4506 ปีที่แล้ว +1

    Incredible video

  • @smilebro100
    @smilebro100 2 ปีที่แล้ว +1

    Thank you very much

  • @shumishaTube
    @shumishaTube ปีที่แล้ว +1

    when we derivate the TR the resualt of MR have error w/c means hand writting error i think 130-10Q

  • @niharikasrivastava2591
    @niharikasrivastava2591 3 ปีที่แล้ว +9

    I think there is a mistake in ascertaining the MR function above...since the TR function is 130q-5q². The derivative of 130q will be 130 and the derivative of 5q² becomes 10q so the MR function becomes 130-10q over there and the profit maximization quantity is 10 units this way

  • @eltonloverboy
    @eltonloverboy ปีที่แล้ว +1

    When you differentiate the TR i think we should get 130-10q

    • @hieule6686
      @hieule6686 10 หลายเดือนก่อน

      he said that it is 0.5 not 5 so it will be 130-q instead of 130-10q

  • @idrisa4017
    @idrisa4017 9 ปีที่แล้ว +2

    That was a great video my man helped me a tonn!!

  • @ivecychilala2379
    @ivecychilala2379 5 ปีที่แล้ว

    Awesome explaination

  • @paullevallois4572
    @paullevallois4572 6 ปีที่แล้ว +2

    thanks so much really helped

  • @Dreamine
    @Dreamine 3 ปีที่แล้ว +1

    TYSM you saved me!

  • @pl8347
    @pl8347 7 ปีที่แล้ว

    this video is so clear, thank you for offering it

  • @abdullateef6406
    @abdullateef6406 2 ปีที่แล้ว +1

    Dear Professor, there is a mistake for the derivation of marginal revenue the answer gotten ought to be 130-10q not 130-q... I guess that should be an oversight! Thank you. But the fact is i understand all the procedures. Kudos

    • @EconomicsinManyLessons
      @EconomicsinManyLessons  2 ปีที่แล้ว +3

      The inverse demand is P = 130 - 0.5q. The decimal point in front of the 5 is hard to see in the video.

    • @abdullateef6406
      @abdullateef6406 2 ปีที่แล้ว

      @@EconomicsinManyLessons Ohh Okay, Now I understand how the answer was derived. Thank you.

  • @deepfriedthumb483
    @deepfriedthumb483 3 ปีที่แล้ว +1

    THANK YOU

  • @yuzukoin7130
    @yuzukoin7130 6 ปีที่แล้ว +2

    perfectly explained, thank you

  • @abrorbekashirbaev3621
    @abrorbekashirbaev3621 3 ปีที่แล้ว +2

    where did you get MR=130-q, ?but it would be MR=130-10q

  • @statistics5391
    @statistics5391 ปีที่แล้ว +1

    Really helpful

  • @dorianamartini8559
    @dorianamartini8559 3 ปีที่แล้ว

    1:24 *MR equation is 130-10q*

    • @EconomicsinManyLessons
      @EconomicsinManyLessons  3 ปีที่แล้ว

      P = 130 - 0.5q; there is a decimal point in front of the 5, so MR = 130 - q.

  • @infosquid5997
    @infosquid5997 ปีที่แล้ว

    Thanks professor. But how differentiation of 5Qsquare equals Q???

    • @M12055
      @M12055 9 หลายเดือนก่อน

      its .5q squared not 5q

  • @mehwishfatima3186
    @mehwishfatima3186 4 ปีที่แล้ว +2

    If MC was just 10 and no 2q was there..what would u have done to find out the area of traingle for producer surplus...plz reply i have my exam in next 4 hours.

  • @aselamaryvosarogo3671
    @aselamaryvosarogo3671 5 ปีที่แล้ว

    (6:42) when you were calculating producer surplus, where did you get the 20 from?

  • @baoquoc3298
    @baoquoc3298 5 ปีที่แล้ว

    Thank you very much, your explaination is much more easier than my teacher

  • @siddiqkawser2153
    @siddiqkawser2153 8 หลายเดือนก่อน

    U rock dude

  • @pinkypix4762
    @pinkypix4762 4 ปีที่แล้ว +2

    5q2 derived is 10q, why did he only put q?

    • @luciacerpa
      @luciacerpa 10 หลายเดือนก่อน

      it was 0.5 by 2=1

  • @letivictoreyissa4219
    @letivictoreyissa4219 6 ปีที่แล้ว +8

    The derivative of the TC seems to be 130-10q .

    • @EconomicsinManyLessons
      @EconomicsinManyLessons  6 ปีที่แล้ว +5

      LETI VICTOR EYISSA P = 130 - 0.5q, TR = 130q - 0.5q^2, MR = 130 - q.

    • @letivictoreyissa4219
      @letivictoreyissa4219 6 ปีที่แล้ว +1

      Thanks for your time.
      But what i was looking at was in getting the MR by getting the derivative of TR= 130q-5q2 , why is = 130-q instead of 130-10q since the last q is squared.

    • @EconomicsinManyLessons
      @EconomicsinManyLessons  6 ปีที่แล้ว +2

      LETI VICTOR EYISSA There is a 1/2 (notice the decimal point in front of the five) in front of the q, so 2 x 0.5 = 2 x 1/2 = 1.

    • @duaali1169
      @duaali1169 6 ปีที่แล้ว

      Yes...same question here!. It's derivative should be 130-10Q

    • @duaali1169
      @duaali1169 6 ปีที่แล้ว +1

      Oh now am clear ..it's 0.5 Q not 5Q

  • @raphaeldayan
    @raphaeldayan 5 ปีที่แล้ว

    So clear and precise. Thank you very much!

  • @rofiqalam-d3t
    @rofiqalam-d3t วันที่ผ่านมา

    do check the DWL part ?

  • @Nikacat
    @Nikacat 7 หลายเดือนก่อน

    a godsend

  • @我是你二爷
    @我是你二爷 8 ปีที่แล้ว

    life saver, best ever

  • @VVesIey
    @VVesIey 6 ปีที่แล้ว +4

    Several videos left me confused. Not yours. (:

  • @DrewExito
    @DrewExito 9 ปีที่แล้ว

    Thanks alot!

  • @melissad3390
    @melissad3390 10 ปีที่แล้ว

    nice vid, thanks a lot

  • @mewantsbeer
    @mewantsbeer 8 ปีที่แล้ว

    Thank you, that was great!

  • @melaniechase
    @melaniechase 15 วันที่ผ่านมา

    5:18 Producer Surplus

  • @jh38949
    @jh38949 3 ปีที่แล้ว

    hmm what if the MC is a constant? where is the producer surplus?

  • @wishlist2636
    @wishlist2636 4 ปีที่แล้ว

    How can u use right angle triangle's formula in finding Deadweight loss???

    • @EconomicsinManyLessons
      @EconomicsinManyLessons  4 ปีที่แล้ว

      www.mathsisfun.com/algebra/trig-area-triangle-without-right-angle.html

  • @Nick090299
    @Nick090299 7 ปีที่แล้ว

    Thanks helped heaps

  • @avtejsingh7396
    @avtejsingh7396 3 ปีที่แล้ว +1

    If the mc is constant. Then¿

  • @sourcloud_
    @sourcloud_ 3 ปีที่แล้ว

    thank u 😭😭😭

  • @MinhAnh-gi1em
    @MinhAnh-gi1em 5 ปีที่แล้ว

    Is it wrong when -0,5q^2/q= -q? Is it = -0,5q

  • @rohansain7405
    @rohansain7405 3 ปีที่แล้ว

    Mr will be 130 - 5q after differtiating w .r.t to q

  • @NgocAnh-bx7ox
    @NgocAnh-bx7ox ปีที่แล้ว

    sorry but why MR crosses the x-axis at 130

  • @DinaraRaRa
    @DinaraRaRa 8 ปีที่แล้ว

    Thank you very much! It helped me a lot!!!

  • @mutiarakhairani7535
    @mutiarakhairani7535 7 ปีที่แล้ว

    sorry i am just wondering why the area of square --> PS: 20 x 40?
    i think it will be (40-0) x (110-40)?

    • @xAGregory
      @xAGregory 5 ปีที่แล้ว +1

      That says 90, not 40, so it's (110-90) (40-0)

    • @DineshKumar-co8ec
      @DineshKumar-co8ec 5 ปีที่แล้ว

      Not square, its rectangle

  • @harrycooper4939
    @harrycooper4939 9 ปีที่แล้ว +4

    How do you find the value for 260 where the demand curve crosses the x axis?

    • @jtark31
      @jtark31 8 ปีที่แล้ว +3

      Set the inverse price function = to zero and solve for q.

    • @DineshKumar-co8ec
      @DineshKumar-co8ec 5 ปีที่แล้ว

      Given p=130+.5q. let p=0 then 0=130+.5q by this q= 260

  • @owensiakavwipa671
    @owensiakavwipa671 7 ปีที่แล้ว

    thanks

  • @WeepsDJ
    @WeepsDJ 7 ปีที่แล้ว

    Thanks very much. Huge help. You explained it well.

  • @TheMMCreations
    @TheMMCreations 6 ปีที่แล้ว +1

    life saver

  • @cabirkerimov519
    @cabirkerimov519 7 ปีที่แล้ว +6

    how do you find 20 deadweight loss... (1/2)x(20)x(8)

  • @swagotasaha2551
    @swagotasaha2551 4 ปีที่แล้ว

    MR will be
    MR= 130-10q

  • @michalinamodzelewska3382
    @michalinamodzelewska3382 5 ปีที่แล้ว

    shouldnt the deadweight loss be .5(16)(8) * 2 because it is an equilateral triangle????????!??!?!?!?!?

  • @dr.manjoorahmedasamdi8431
    @dr.manjoorahmedasamdi8431 3 ปีที่แล้ว

    what if the MC is a constant number?

    • @EconomicsinManyLessons
      @EconomicsinManyLessons  3 ปีที่แล้ว

      In this video's first example, I use a constant MC and solve for the deadweight loss. The CS (area of triangle) = 0.5(800 - 480)60 and PS (is an area of rectangle with constant MC) = (480 - 160)40.
      th-cam.com/video/7Wo4rZl81OM/w-d-xo.html

    • @dr.manjoorahmedasamdi8431
      @dr.manjoorahmedasamdi8431 3 ปีที่แล้ว

      Thanks a lot.. I have already figured out for what i was looking for..

  • @jebun.3363
    @jebun.3363 5 ปีที่แล้ว

    If MC is not given then what should we do ?

    • @EconomicsinManyLessons
      @EconomicsinManyLessons  5 ปีที่แล้ว +1

      If you have a total cost function, you will need to take the derivative of it to get MC. If your example assumes MC = 0, set your MR equation equal to 0 and then solve for Q...you will find that the profit maximizing price and quantity will be at the midpoint of the demand curve.

    • @jebun.3363
      @jebun.3363 5 ปีที่แล้ว

      @@EconomicsinManyLessons thanks for responding.

  • @miltosfekas8901
    @miltosfekas8901 ปีที่แล้ว

    you have made a mistake in your calculations in 2:21 MR should be MR=130-10q so q =10 and p=80

    • @M12055
      @M12055 9 หลายเดือนก่อน

      its 0.5q sqaured not 5

  • @edoardotesta7492
    @edoardotesta7492 5 ปีที่แล้ว

    what would happen if MC was only 2q without the +10??? someone please helpppp

  • @thabisohaizo4299
    @thabisohaizo4299 5 ปีที่แล้ว

    how did you get MR...isn't supposed to be: 130 -10q

    • @EconomicsinManyLessons
      @EconomicsinManyLessons  5 ปีที่แล้ว +1

      The inverse demand is P = 130 - 0.50Q...there is a one half in front of Q, not 5.

    • @thabisohaizo4299
      @thabisohaizo4299 5 ปีที่แล้ว +1

      @@EconomicsinManyLessons thank you...I miss read the question...I took the .5 as 5

  • @cameliaeffendhi2601
    @cameliaeffendhi2601 9 ปีที่แล้ว +2

    i want to know how to find the loss of consumer surplus, but, i can't find it. is it deadweight loss is a loss of consumer surplus?

  • @ngwaiman9802
    @ngwaiman9802 8 ปีที่แล้ว +2

    Can consumer surplus, producer surplus and deadweight loss be calculated by definite integration?

    • @EconomicsinManyLessons
      @EconomicsinManyLessons  8 ปีที่แล้ว +1

      Yes. I hope to make a video using definite integrals to calculate those things.

  • @beshateresa2701
    @beshateresa2701 2 ปีที่แล้ว

    How derivative of TR becomes 130-q but 130-10q i think

    • @EconomicsinManyLessons
      @EconomicsinManyLessons  2 ปีที่แล้ว

      TR = 130Q - 0.5Q^2. There is a decimal point in front of the five.

  • @serinacat4781
    @serinacat4781 7 ปีที่แล้ว

    perfect vedio

  • @elizabethsmith4083
    @elizabethsmith4083 4 ปีที่แล้ว

    How did u get the 260

    • @EconomicsinManyLessons
      @EconomicsinManyLessons  4 ปีที่แล้ว

      P = 130 - 0.5Q. Set P = 0 and solve for Q.
      0 = 130 -0.5Q
      0.5Q = 130
      Q = 130/0.5= 260

  • @70VDA
    @70VDA ปีที่แล้ว

    My final is in 20 mins. 👍

  • @MrPada1205
    @MrPada1205 8 ปีที่แล้ว +2

    I'm sorry but wouldn't the derivative of TR with respect to q be 130-10q instead of 1330-q? You simply eliminate the 5 and don't consider that q was raised to the power of 2

    • @VestasCure
      @VestasCure 7 ปีที่แล้ว

      This was 4 months ago so I assume you either got the answer or don't care anymore, but it was .5q, not 5q. Therefore raising .5 to the power of 2 gave 1q.

    • @josiahmongru8197
      @josiahmongru8197 5 ปีที่แล้ว

      @@VestasCure .5 to the power of two calculates to 0.25

  • @klimentpaskalev962
    @klimentpaskalev962 7 ปีที่แล้ว

    that helped

  • @Priyanka-rg8pq
    @Priyanka-rg8pq 4 ปีที่แล้ว

    Hii can you please tell me how to do the following question?
    For a monopolistic firm, law of demand is p=50-x^2 and MC+1+x^2. Determine the consumer surplus at the price which the monopolist would like to fix?

  • @aditipandey2045
    @aditipandey2045 10 หลายเดือนก่อน

    U r doing differenation wrong

    • @M12055
      @M12055 9 หลายเดือนก่อน

      Its 0.5q squared lol not 5q squared

  • @Lakostus31
    @Lakostus31 2 ปีที่แล้ว

    Hey i have a little question.... In the task i have to solve, my MC = -5 + 2 q how can I calculate the deadway loss now? I probably can't start with a negative :)
    Maybe someone knows the answer

  • @ruksanaparokot8497
    @ruksanaparokot8497 5 ปีที่แล้ว

    Can any one give equations for consumer surplus, producer surplus, deadweigh loss wothout graph

  • @jonatanleandoer9006
    @jonatanleandoer9006 4 ปีที่แล้ว

    Intersucks xD

  • @mulyasakti8138
    @mulyasakti8138 5 ปีที่แล้ว

    H

  • @swetasrivastava9143
    @swetasrivastava9143 3 ปีที่แล้ว

    There are so many mistakes in here
    1. Derivative of 5q^2 will be 10q
    2. 5. 40 this guy has taken 20
    Seriously! So many silly mistakes

    • @EconomicsinManyLessons
      @EconomicsinManyLessons  3 ปีที่แล้ว

      The derivative in the video is for 0.5q^2, which is q. I don't understand your 2nd comment.

  • @hemant8592
    @hemant8592 4 ปีที่แล้ว

    Thank you very much! It helped me a lot!!!

  • @argenturatbek787
    @argenturatbek787 4 ปีที่แล้ว

    Thanks a lot!

  • @Nick090299
    @Nick090299 7 ปีที่แล้ว

    Thanks helped heaps