The "Shut-down Rule" - When should a firm shut down in the face of economic losses?

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  • Опубликовано: 22 фев 2012
  • This lesson illustrates two situations in which a firm in a perfectly competitive market is earning economic losses. In one case, the losses are less than the firm's total fixed costs. In another, the firm's losses exceed its fixed costs, meaning the firm is better off shutting down.
    Want to learn more about economics, or just be ready for an upcoming quiz, test or end of year exam? Jason Welker is available for tutoring, IB internal assessment and extended essay support, and other services to support economics students and teachers. Learn more here! econclassroom.com/?page_id=5870

Комментарии • 50

  • @sahb8091
    @sahb8091 10 лет назад +27

    You are genuinely a fantastic teacher.

  • @lJADU
    @lJADU 10 лет назад +3

    Amazing. Simply amazing. You explain it so much clearer than my lecturer/textbooks. THANKS!

  • @nannybannany
    @nannybannany 12 лет назад +4

    This was so incredibly helpful. I'm taking my Econ class online and seeing this in a moving picture with lecture works a lot better than me solely reading the book and looking at graphs. =) Thank you!

  • @briansibusisomahlangu
    @briansibusisomahlangu 9 лет назад +3

    This is excellent!!! Explains better than the textbook I'm using. Very helpful

  • @amritaverma2541
    @amritaverma2541 10 лет назад +4

    HOW CAN YOU BE SO AWESOME AND LEGENDARY AT THE SAME TIME!!! THANKYOU SOOOOOOOOOO MUCH!!!!!

  • @brendanownsu
    @brendanownsu 8 лет назад +8

    helping me study for my final tomorrow jason!

  • @QueenCarryOn
    @QueenCarryOn 10 лет назад +1

    You're a legend. Helped me work out the shut down point for pretty much any market structure :)

  • @nathankapsimallis1677
    @nathankapsimallis1677 6 лет назад

    Your Videos are sensational, So much easier to understand thank you!

  • @enockmasiyazi8135
    @enockmasiyazi8135 10 лет назад +6

    that is an exceptional lecture

  • @musiyi51
    @musiyi51 5 лет назад

    Very clear explanation! Thank you so much

  • @sspgpsling
    @sspgpsling 12 лет назад

    OMG! it's AWESOME!
    you pointed out a really really important concept with total fixed cost..
    i really appreciate it...
    it helps me a lot! thank you so much !! thank you!!
    you are a great teacher :)

  • @ruchen8507
    @ruchen8507 7 лет назад

    Clearly explained. Thank you!

  • @chanpuiyu2000
    @chanpuiyu2000 10 лет назад +1

    Thank you so much, you are a good teacher!!

  • @hammadshaikhha
    @hammadshaikhha 12 лет назад

    This video was AMAZING! explanation of the shut down rule, thank you!

  • @priyankam2449
    @priyankam2449 7 лет назад

    This video has helped me a lot! Thanks!

  • @jyothihanumantha2240
    @jyothihanumantha2240 2 года назад

    lifesaver. Great video! Thank you.

  • @clairedougherty1687
    @clairedougherty1687 4 года назад

    jason welker my king

  • @christinechristine6102
    @christinechristine6102 6 лет назад

    Excellent! You and you teaching are! :)

  • @smileyyan1085
    @smileyyan1085 9 лет назад

    This has helped a lot,thanks! :D

  • @50nya
    @50nya 6 лет назад

    Thank you, you're the best!

  • @JunaidAumi
    @JunaidAumi 8 лет назад +1

    does anyone know what software jason uses here?

  • @lufeiwang4538
    @lufeiwang4538 6 лет назад

    It is a good explanation I can help review ,thank you

  • @ll6257
    @ll6257 3 года назад

    Thank you!!!You helped me a lot!!

  • @amyd4366
    @amyd4366 8 лет назад

    Thank you!! super helpful!!

  • @hathawayamato
    @hathawayamato 8 лет назад +1

    Thank you!

  • @user-tw3tr6zw6x
    @user-tw3tr6zw6x 6 лет назад

    you speak very well and I can understand graph

  • @judehzeyad9002
    @judehzeyad9002 9 лет назад +1

    Thank you

  • @essamhassan7943
    @essamhassan7943 3 года назад

    Great effort , thanks

  • @AbrahamSalazar210
    @AbrahamSalazar210 7 лет назад

    Great content & very well explained. +1 subscriber

  • @karlismeiers6078
    @karlismeiers6078 8 лет назад

    Shit, you might just be the reason why I pass Micro, thanks a lot!

  • @truman5560
    @truman5560 3 года назад

    What if the marginal revenue curve passes through the intersection between AVC and ATC curve? does the firm shut down or remain in business?

  • @sthembelehlongwane4719
    @sthembelehlongwane4719 7 лет назад

    thank u, this really helped

  • @fruitcupsandorangejuice
    @fruitcupsandorangejuice Год назад

    thank you

  • @justinwelte8668
    @justinwelte8668 9 лет назад +8

    you da nigga mr walker THANKS

  • @princekangwa3232
    @princekangwa3232 3 года назад

    helping me prepare for my test tomorrow

  • @mmmmmmmmmmichelle
    @mmmmmmmmmmichelle 9 лет назад

    This is amazing

  • @WhiteLightbd
    @WhiteLightbd 10 лет назад

    thanks a lot... it was perfectly clear... :)

  • @gelo5
    @gelo5 7 лет назад

    it's best it makes me to know more

  • @jeronimom1593
    @jeronimom1593 4 года назад

    Turned up hard to the intro music, great video!

  • @mohammedhussein9281
    @mohammedhussein9281 8 лет назад

    when will a firm earn a profit or incur a loss in competitive market? please answer me as soon as possible

  • @abdullahal-hazzani9882
    @abdullahal-hazzani9882 6 лет назад

    thanks

  • @mansinegi6672
    @mansinegi6672 5 лет назад

    Why firm suffer loss because of high cost production can some one explain this to me

  • @Phazratali786
    @Phazratali786 7 лет назад

    nice sir

  • @cobynmurphy4599
    @cobynmurphy4599 5 лет назад

    one step at a timee

  • @HowTo-jp3tl
    @HowTo-jp3tl 3 года назад

    In short run, if price < AVC then shut down.
    In long run if price < ATC then shut down.
    Am I right?

  • @astonmargolis-dias7089
    @astonmargolis-dias7089 10 лет назад

    maaan i wish there were more pretend numbers

  • @SelfStirringPot-com
    @SelfStirringPot-com 11 лет назад +1

    I earn 2 million profit but 0$ economic profit each year. I am leaving the market. Am I (a) a socialist (b) kicked in head by mule (c) follower of Keynesian economics (d) run a government owned company (e) all of the above

  • @selbymasekela
    @selbymasekela 10 лет назад

    Thank you