Perfect Competition and Profit Maximization

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  • Опубликовано: 30 янв 2025

Комментарии • 105

  • @jordanjones7762
    @jordanjones7762 8 лет назад +108

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

    • @FreeEconHelp
      @FreeEconHelp  6 лет назад +4

      Awesome, glad you found it useful!

    • @williamchan1613
      @williamchan1613 5 лет назад

      Jordan Jones can’t agree anymore than this

  • @mouminiumaru8300
    @mouminiumaru8300 7 лет назад +7

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

  • @bonkemeyile6886
    @bonkemeyile6886 12 лет назад

    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.

  • @pritampatra6271
    @pritampatra6271 3 года назад +1

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

  • @serinacat4781
    @serinacat4781 7 лет назад +8

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

  • @imabdirahman5790
    @imabdirahman5790 6 лет назад +3

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

  • @JK-lk6mx
    @JK-lk6mx 3 года назад

    Thank you for teaching me what my professor couldn't

  • @riyadhbouddou6109
    @riyadhbouddou6109 6 лет назад +1

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

  • @smackdownhotel8830
    @smackdownhotel8830 5 лет назад +1

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

  • @cocolopez7438
    @cocolopez7438 7 лет назад +7

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

  • @arnavsutodiya4468
    @arnavsutodiya4468 2 года назад +1

    best explanation ever!!!!

  • @leKELSO
    @leKELSO 12 лет назад +1

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

  • @darienashley5873
    @darienashley5873 9 лет назад +10

    You are a living breathing Dank Meme. thank you

  • @thitikornkkaewduangden6620
    @thitikornkkaewduangden6620 8 лет назад

    thx so much this is ANS for final EXAM of mine

  • @AshishRayusa
    @AshishRayusa 2 года назад

    Very good explanation !!!

  • @luakii
    @luakii 2 года назад

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

  • @UndergroundBill
    @UndergroundBill Год назад

    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 ?

  • @YutyrannusRex
    @YutyrannusRex 7 лет назад

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

  • @aguyy222
    @aguyy222 9 лет назад +8

    thanks a lot! very well explained

  • @nathanielking6280
    @nathanielking6280 9 лет назад

    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 лет назад +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 8 лет назад

      correct

  • @eshanair7054
    @eshanair7054 4 года назад

    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?

  • @DreJr
    @DreJr 9 лет назад

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

  • @necesarioshielamae1224
    @necesarioshielamae1224 4 года назад

    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..

  • @abzs1589
    @abzs1589 5 лет назад +1

    does this apply to monopoly and imperfect market structure?

    • @FreeEconHelp
      @FreeEconHelp  5 лет назад +1

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

  • @mar8014
    @mar8014 11 лет назад

    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.

  • @prayassambhare4367
    @prayassambhare4367 5 лет назад +1

    very very very nicely explained

  • @leozarni9570
    @leozarni9570 4 года назад

    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.

  • @Gello1982
    @Gello1982 9 лет назад +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 лет назад

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

  • @berkk1993
    @berkk1993 10 лет назад +3

    just wonderful

  • @rampilla32
    @rampilla32 7 лет назад +1

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

  • @Childrensmathes
    @Childrensmathes 4 года назад

    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.

  • @dianacanary2409
    @dianacanary2409 8 лет назад

    thank you proff please do more videos short term runs

  • @synthiatinni1129
    @synthiatinni1129 7 лет назад +2

    @3.30 that line should be MC, right?

  • @alvindaniswara8543
    @alvindaniswara8543 8 лет назад

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

    • @JAFFER3657
      @JAFFER3657 8 лет назад

      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 лет назад

      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.

  • @jorgefortunato9295
    @jorgefortunato9295 5 лет назад

    Perfect, many many thanks!

  • @oliyadworku5176
    @oliyadworku5176 2 года назад

    What equilibrium means?

  • @dattatreyaswain8340
    @dattatreyaswain8340 Год назад

    What about the second condition

  • @SSS-sb3sw
    @SSS-sb3sw 7 лет назад +1

    this is helpful! thank you

  • @lawclan8591
    @lawclan8591 6 лет назад

    what pencil are you using

  • @thedazills1351
    @thedazills1351 6 лет назад +1

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

  • @aseelibra4886
    @aseelibra4886 5 лет назад

    Thank you its very helpful

  • @azerothdss
    @azerothdss 4 года назад

    I understand now. Thank you

  • @aman-vz1fq
    @aman-vz1fq 5 лет назад

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

  • @TheWalkingsouls
    @TheWalkingsouls 12 лет назад

    nice one. Thanks

  • @asfionasiva1
    @asfionasiva1 11 лет назад

    thank you this was very helpful !!

  • @sandeshb7132
    @sandeshb7132 5 лет назад

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

  • @md8300cn
    @md8300cn 9 лет назад +2

    THANK YOU SO MUCH!!

  • @brandonbreton1453
    @brandonbreton1453 11 лет назад +1

    thank you
    thank you
    thank you
    thank you

  • @harresyakubi2187
    @harresyakubi2187 12 лет назад

    when is this firm pareto optimal?

  • @박한결-z4k
    @박한결-z4k 8 лет назад

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

    • @matthiasstepancich
      @matthiasstepancich 8 лет назад +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 8 лет назад

      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.

  • @fabianhaule962
    @fabianhaule962 11 лет назад

    thanx this is real so helpful

  • @eyerusalemkidane7595
    @eyerusalemkidane7595 7 лет назад

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

  • @Mustlight
    @Mustlight 3 года назад

    Thanks a lot.

  • @justinjayanand6852
    @justinjayanand6852 Год назад

    Sir can you give me example questions

  • @Rdot19
    @Rdot19 6 лет назад +1

    Thanks man..✌

  • @roznevynam
    @roznevynam 8 лет назад

    THANK YOU MAN!!!

  • @mz2011pk
    @mz2011pk 12 лет назад +1

    thanks sir

  • @mar8014
    @mar8014 11 лет назад

    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 лет назад

      exactly

    • @gartyqam
      @gartyqam 7 лет назад

      shutyo dumb ass niga up

    • @kip99283
      @kip99283 6 лет назад

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

  • @buellerferris
    @buellerferris 11 лет назад +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? :)

  • @MrQuequowle
    @MrQuequowle 12 лет назад

    Thank you !

  • @sohcheewei
    @sohcheewei 9 лет назад +1

    A very helpful video!

  • @planbeplanner
    @planbeplanner 4 года назад

    Good

  • @jonakchetia
    @jonakchetia 12 лет назад

    Thank you

  • @jammiboi1
    @jammiboi1 11 лет назад

    You sound so much like doug from the hangover!

  • @narakusdemon.88
    @narakusdemon.88 13 лет назад

    Thanks so much!

  • @aayansherwani
    @aayansherwani 2 года назад

    helped alot.

  • @rosiedan9740
    @rosiedan9740 9 лет назад +1

    thank you so much sir! this was very helpful.

  • @khadizaaktar4595
    @khadizaaktar4595 6 лет назад

    thanks a lot

  • @ilonamuradova7786
    @ilonamuradova7786 9 лет назад +1

    Great, thank you, helped a lot!

  • @trisha8110
    @trisha8110 8 лет назад

    THANKS

  • @naya2276
    @naya2276 8 лет назад

    thankyouuuuuuuuuuuuuuuuuuuuuuuuuuu

  • @jorgefortunato9295
    @jorgefortunato9295 5 лет назад

    I saved my life

  • @feellikereal3d81
    @feellikereal3d81 7 лет назад

    Background sound is poor...

  • @MeMe-iv4ld
    @MeMe-iv4ld 6 лет назад +2

    Nice pen

  • @mdc1802
    @mdc1802 5 лет назад

    "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.
    ruclips.net/video/_vUUdRsDgVA/видео.html

  • @makemymarket1772
    @makemymarket1772 2 года назад

    Mc = Mr , Mc = Mr , Mc=Mr …..

  • @krj2009
    @krj2009 8 лет назад +2

    There is not enough information given to answer this question.

  • @luakii
    @luakii 2 года назад

    im gonna cry

  • @drewduenas6699
    @drewduenas6699 4 года назад

    Thank you

  • @luakii
    @luakii 2 года назад

    thank you