My professor made this seem like doing brain surgery while teaching Elon Musk about loop quantum gravity and how to better colonize Mars. This video is significantly better.
Omg I've been ransacking the whole Internet to find a post or video explains cournot theory to understand it. and this video is surprisingly terse and understandable. thank you for what you're doing for this world! :)
I have the worst professor I've ever had for Intermediate Micro. Unfortunately, the textbook (the same Varian one everyone seems to use for this class) doesn't do a great job explaining things either. I've been struggling to find any resources to help me, but this was one of the first times I've understood what was happening. I can't believe how simple this is. Thank you!
I just want to thank you so much. As a german native speaker i had to watch an english video to unterstand something my prof wasnt able to teach me in german in a couple hours.
Incredible explanation... I could not find a single post anywhere on the internet that explains Cournot equilibrium using the MR=MC point of profit-maximisation in such a SIMPLE way ... thank you!
I cannot thank you enough, I don't know why Lecturers do want to explain concepts, we didn't even get examples or even answers. Preparing for a test tomorrow.
I seriously cannot thank you enough for putting this video out! I didn't quite get it in class and then it all clicked after watching this looool. Thanks again!
This was so helpful! I don't have words to thank you.. I think i've relied on your videos for every and each one of my market structure sections. Thank you so much!!
Another way to solve this problem is by use of Cramer's Rule. This is done by simplifying the equation. In this case, 100-40=60 Firm 1 = 60-2q1-q2 Firm 2 = 60-q1-2q2 Use Cramer's rule. (-2*-2) - (-1*-1) = 3 (60*-2) - (60*-1) = -60 -60/3 = 20 (drop the negative in this case) Thus 20 is the equilibrium
With the collusion outcome, we solve for the monopoly profit-max. output level and price. We will assume the two firms produce half the market output. Here's the math: P= 100 - Q. Now solve for total revenue to get TR = 100Q - Q^2. Taking the derivative of TR gives marginal revenue which equals MR = 100 - 2Q. Set MR equal to marginal cost. Because total cost = 40Q, MC = 40 MR = MC 100 - 2Q = 40. Solve for Q. Q = 30 (each firm produces 15 units of output) P = 100 - Q = 100 -30 = $70
It doesn't matter brother, you just substitute the MC for your new firm, the way it's written on my questions is the costs are written as C sub i, where i stands for a specific firm (in this case 1 or 2).
Yes, if you are told that marginal cost of producing the goods for both firms is 2Q, then the marginal cost for firm 1 is MC = 2Q1 and the marginal cost for firm 2 is MC = 2Q2.
please can you resolve this question! Assuming two players in the market, with the assumption that each control half of the market initially with their main target being output maximization, Suppose Q=90-P, with necessary illustrations, (a) Determine market Equilibrium under oligopoly. (b) Given the functions, P= 100-0.5(X1+X2) and cost functions described by C1 = 5X1 and C2 = 0.5X22 a) Find the profit made by each firm if equilibrium under oligopoly is achieved b) Calculate the MR of each firm at equilibrium
Thank you so much for this Here is a quick question how to get 3/4q1 and also suppose the two firms are to merge.The department of justice will only permit them to merge only if it is convinced that the price of the product will not be higher than the Pre-merger price.The post merger cost function is of the form c(Q)=XQ. Determine the value(s) of X for which the Justice department will deny them the merger.
It's very clear! However, in the beginning, you assumed that P=100-Q. I don't quite get what 100 represents in this situation :) Please help me! Thanks
Jules Tran 100 is just the vertical intercept of the demand curve (where it crosses the price axis)--it tells us that consumers will not buy any of the product at P = 100.
With your videos I just learned Cournot, Bertrand and Stackelberg in one and a half hours! I owe you a lot, thank you very much!
My professor made this seem like doing brain surgery while teaching Elon Musk about loop quantum gravity and how to better colonize Mars. This video is significantly better.
Hahaha
My professor didn't even bother explaining it he assumed it was common sense lol
day made ahahaha
I full fully fully agree...
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Omg I've been ransacking the whole Internet to find a post or video explains cournot theory to understand it. and this video is surprisingly terse and understandable. thank you for what you're doing for this world! :)
I have the worst professor I've ever had for Intermediate Micro. Unfortunately, the textbook (the same Varian one everyone seems to use for this class) doesn't do a great job explaining things either. I've been struggling to find any resources to help me, but this was one of the first times I've understood what was happening. I can't believe how simple this is. Thank you!
I could passionately kiss this man for making this 8:40min video which could have saved me the last three hours.
I just want to thank you so much. As a german native speaker i had to watch an english video to unterstand something my prof wasnt able to teach me in german in a couple hours.
It's amazing how an 8 min video on RUclips is more helpful than 3 or 4 90 minute lectures at uni. Thanks man
This makes everything so much clearer!!! I'll recommend your channel to all of my colleagues! Thank you so, so much!
I am glad you liked it, and thank you for sharing!
Incredible explanation... I could not find a single post anywhere on the internet that explains Cournot equilibrium using the MR=MC point of profit-maximisation in such a SIMPLE way ... thank you!
I cannot thank you enough, I don't know why Lecturers do want to explain concepts, we didn't even get examples or even answers. Preparing for a test tomorrow.
Good luck on your exam!
thank you for explaining so clearly! when my professor in my lecture explained this it seemed so much more difficult. you're a life saver!
This was extremely helpful! My professor didn't do a good job at teaching it but you made it so clear
Not only were your computations accurate but your explanations to the answers were accurate too. Thank you!
wow this explains better than my textbook
I seriously cannot thank you enough for putting this video out! I didn't quite get it in class and then it all clicked after watching this looool. Thanks again!
You deserve a Trophy 👏. Thanks for the concise and simple explanation on this topic.
Staring my Prof's note for an hour and won't understand anything. This 8 minute video just taught me everything I need.
This was so helpful! I don't have words to thank you.. I think i've relied on your videos for every and each one of my market structure sections.
Thank you so much!!
Thank god you are a living legend. They explained it so difficult in the books.
I spent almost the whole day to grasp my lecturer's notes😊😊... Your presentation just made me understand everything in a few minutes. Thank you
This video was very straightforward and extremely beneficial. May Allah bless you brother.
This might be the best economics learning resource known to man
Less than an hour until my final and this completely cleared questions i still had- thank you!
Another way to solve this problem is by use of Cramer's Rule.
This is done by simplifying the equation. In this case,
100-40=60
Firm 1 = 60-2q1-q2
Firm 2 = 60-q1-2q2
Use Cramer's rule.
(-2*-2) - (-1*-1) = 3
(60*-2) - (60*-1) = -60
-60/3 = 20 (drop the negative in this case)
Thus 20 is the equilibrium
doubt you'll see this but you really helped me out, thanks
That is great to hear!
Thanks a lot ... Sir g! Your all Videos are so easy & best for understand difficult concepts ...... ALLAH gives you more successful life ........
Man you are doing fantastic job, keep it going man
I just saw your channels it's good one, from economic student in Thailand
BRAVO!!! This is EXACTLY what I needed to see!! Now I totally understand! THANK YOU SO MUCH!!!
thanks man!! the professor lecture was so much more difficult! this is pure and simple!
Thank you for this; better than the textbooks.
I have an exam tomorrow in Microeconomics 1 and you saved everything!
With the collusion outcome, we solve for the monopoly profit-max. output level and price. We will assume the two firms produce half the market output. Here's the math:
P= 100 - Q. Now solve for total revenue to get TR = 100Q - Q^2. Taking the derivative of TR gives marginal revenue which equals MR = 100 - 2Q. Set MR equal to marginal cost. Because total cost = 40Q, MC = 40
MR = MC
100 - 2Q = 40.
Solve for Q.
Q = 30 (each firm produces 15 units of output)
P = 100 - Q = 100 -30 = $70
Best video on Cournot around
thanks for making this breakdown look easy.. My teacher confused us for n hour
You are welcome!
Quite easy. Good explanation. Thank ya. Greetings from Portugal !!
thank you so much! you are way more helpful than my professor
Holy crap subscribed. Explained so much better
you made this topic much more easier thanks a lot :)
You are the best, thanks for amazing teaching method
Thank you very much! Your explanation helped me a lot. Greets from Germany and keep the good work!
You saved my day. Was going crazy trying to solve that
Dry asf that you only have 7.7k subs. Your channel is super helpful. Cheers for all this eh, appreciate it big time
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Thanks you explained it way better than my professor!
You saved my assignment. Thankyou so much. God bless you.👌✌
thanks so much for this explanation, my proff is horrible at explaining this, hopefully I get an A on tomorrows midterm.
Thank you so much, you deserve more views, excelent content
son las 2 de la mañana y tengo un examen a las 9. ERES UN HEROE
Cómo te fue?🤔
@@JMyDK14 la verdad es que muy bien, me preguntaron esto y lo supe hacer
This actually really helped. Thanks man.
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Your videos are really helpful, thank you!!
Thank u sir... It's very clear explanation. U solved each step make it easy...thanks
Your videos are really helping me a lot thx , great way to explain :D
Danke 😊 please where is the 3/4 coming from??
thanks for your effort
but what if the MC for both firms are different ?
It doesn't matter brother, you just substitute the MC for your new firm, the way it's written on my questions is the costs are written as C sub i, where i stands for a specific firm (in this case 1 or 2).
great i understood very well.
Thank you for posting! This video was so helpful!
Just curious as to how he gets 3/4q1=15 instead of 1/1/4 0r 1.25 at the 6:59
JJ Sowa bro....notice carefully....it is q1 - 1/4 q1 which is 3/4 q1
oh shit ty, didn't see that either
This is so helpful, thank you! I'm just confused as to what the derivatives are
Yes, if you are told that marginal cost of producing the goods for both firms is 2Q, then the marginal cost for firm 1 is MC = 2Q1 and the marginal cost for firm 2 is MC = 2Q2.
Thank you! I love your Videos!
You're a lifesaver! Thx so much
please can you resolve this question!
Assuming two players in the market, with the assumption that each control half of the market initially with their main target being output maximization, Suppose Q=90-P, with necessary illustrations, (a) Determine market Equilibrium under oligopoly. (b) Given the functions, P= 100-0.5(X1+X2) and cost functions described by C1 = 5X1 and C2 = 0.5X22
a) Find the profit made by each firm if equilibrium under oligopoly is achieved
b) Calculate the MR of each firm at equilibrium
Thank you so much! I was close to pulling my hair out in sectional class
Thank you for the amazing video!
Sir,you made this easy
Thank you so much sir ❤
Very well explained!
Wow, very helpful. Thank you so much!
Excellent video!I just understood this.
Thank you so much for this
Here is a quick question how to get 3/4q1 and also suppose the two firms are to merge.The department of justice will only permit them to merge only if it is convinced that the price of the product will not be higher than the Pre-merger price.The post merger cost function is of the form c(Q)=XQ.
Determine the value(s) of X for which the Justice department will deny them the merger.
Thank you for the excellent explanation! its a nice video !
Thank you again, this was very helpful.
Much thanks from the University of Nairobi
exactly what i needed
Wow. Better than my lecturer, there might still be hope o pass after all
magisterial solution!
VERY GOOD CONTENT THANKS FOR YOUR EXPLANATION
Thanks! This is extremely helpful!
so ready for my exam after this!
Thank you, you absolute king!
best explanation ever. thanks!!
It's very clear! However, in the beginning, you assumed that P=100-Q. I don't quite get what 100 represents in this situation :) Please help me! Thanks
Jules Tran 100 is just the vertical intercept of the demand curve (where it crosses the price axis)--it tells us that consumers will not buy any of the product at P = 100.
Yes
easy to understand, very nice
thank you very much sir, this was very useful
great explanation! Thank you for posting!
Thank you for the nice video! Could you share a video on how to approach when the marginal costs for two firms are not same?
keep up work sir. thank you
HOAA ! wow thank you for your great tutorial,, gonna continue on the next episode. keep it up
You saved me in my Econ-401 Final
Thanks a lot for the explanation that is very helpful. However, how do you do this if the total cost is not given to you?
Great vid, what do you do if you have more than 2 identical firms?
This was soooo helpful
Saved my life
Great video bro, thanks !!
Thank you very much. Why do lecturers at universities also make things hard?
You are welcome. Thanks for watching!
Nicely explained :)
Absolutely incredible thank you so much