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Lecture Comments (40)

1 answer

Last reply by: Professor Jibin Park
Thu Nov 3, 2016 11:15 AM

Post by derui wang on November 3 at 09:06:33 AM

At The Long-run Industry Supply Curve section, about19:00. Since the explanation of the curve says "Profits cause more firms to enter, which shift to the SUPPLY CURVE to the right", why do you shift the demand curve? It makes no sense

1 answer

Last reply by: Professor Jibin Park
Sun Nov 2, 2014 12:00 AM

Post by Rebecca Dai on November 1, 2014

when we draw insustry supply curve, is the number of quantity we label on the market graph the same as what we do on individual graph?

1 answer

Last reply by: Professor Jibin Park
Sun Nov 2, 2014 12:00 AM

Post by Rebecca Dai on November 1, 2014

I still don't understand what the differences are between production and profitability. I don't understand the differences between short run and long run.

3 answers

Last reply by: Professor Jibin Park
Sun Nov 2, 2014 6:58 PM

Post by Rebecca Dai on November 1, 2014

So when we break even, is that perfect competition?

2 answers

Last reply by: Professor Jibin Park
Sun Nov 2, 2014 12:02 AM

Post by Rebecca Dai on November 1, 2014

And why do atc and mc intersect at the minimum point of atc?

1 answer

Last reply by: Professor Jibin Park
Sun Nov 2, 2014 12:02 AM

Post by Rebecca Dai on November 1, 2014

at 37:30, why can you just shift the atc down? It is still perfect competition after all! so I think it should be at the E price.

1 answer

Last reply by: Professor Jibin Park
Sun Nov 2, 2014 12:03 AM

Post by Rebecca Dai on November 1, 2014

When you draw the graph at 33:00, is the parabola just atc or lratc?

1 answer

Last reply by: Professor Jibin Park
Sun Nov 2, 2014 12:03 AM

Post by Rebecca Dai on November 1, 2014

23:00, I don't get it why the green shadowed area is eco profit?

1 answer

Last reply by: Professor Jibin Park
Sun Nov 2, 2014 12:04 AM

Post by Rebecca Dai on November 1, 2014

In industry supply curve, when you talk about when to shut down the company, what does the price stand for? Market price? or something else? And in the former lecture, you say that when mc>mb, we shut down. But what you say in this lecture is different from that

1 answer

Last reply by: Professor Jibin Park
Sun Nov 2, 2014 12:04 AM

Post by Rebecca Dai on November 1, 2014

Do we need to know how do draw avc?

4 answers

Last reply by: Professor Jibin Park
Sun Nov 2, 2014 12:05 AM

Post by Rebecca Dai on November 1, 2014

Is 5 steps to AP 5 a complete textbook or simplified version or just test Technic? Thanks

2 answers

Last reply by: Professor Jibin Park
Sun Nov 2, 2014 12:05 AM

Post by Rebecca Dai on November 1, 2014

What is AVC? where does the V come from

1 answer

Last reply by: Professor Jibin Park
Sun Nov 2, 2014 12:06 AM

Post by Rebecca Dai on November 1, 2014

do we need to know why mc is like a nike?

1 answer

Last reply by: Professor Jibin Park
Sun Nov 2, 2014 12:07 AM

Post by Rebecca Dai on November 1, 2014

in production and profits, why is the graph a straight line when MR=P=AR=D? It doesn't make sense at all. I cannot understand it well.

And when they MC is equal to them, isn't there no profit at all if cost equals revenue?

1 answer

Last reply by: Professor Jibin Park
Mon Aug 18, 2014 1:16 PM

Post by Monica Hughes on August 10, 2014

I agree with Ryan - making the slides a PDF would be a great improvement over the unorganized jpeg files.

The Quick Notes tab is a very nice feature to the training.

1 answer

Last reply by: Professor Jibin Park
Sun May 25, 2014 11:29 AM

Post by Michelle Lawrence on May 24, 2014

Professor,
You kept saying ATC instead of AVC during the Short run of production. Which is right?

0 answers

Post by Ryan Reddell on May 12, 2014

Educator could be a great teaching tool.  But I am constantly finding small but annoying issues when trying to learn.  

How hard would it be to put the slides into one PDF file?  It's annoying trying to deal with 20 jpegs, print them out only to find out they are all mixed up.  

Perfect Competition

  • The four types of markets structures include Perfect Competition, Monopoly, Oligopoly and Monopolistic Competition.
  • No matter what market structure, the profit-maximizing quantity and output will be where Marginal Cost (MC) = Marginal Revenue (MR).
  • If long-run equilibrium, a perfectly competitive firm makes no economic profit.
  • The equation for economic profit is Economic Profit = Accounting Profit – Opportunity Cost.
  • If a perfectly competitive firm is making an economic profit in the short-run, the price will be greater than the ATC. Firms will eventually enter to drive out the profit in the long-run.
  • If a perfectly competitive firm is incurring an economic loss in the short-run, the price will be less than the ATC. Firms will eventually exit and drive out the loss in the long-run.

Perfect Competition

Lecture Slides are screen-captured images of important points in the lecture. Students can download and print out these lecture slide images to do practice problems as well as take notes while watching the lecture.

  • Intro 0:00
  • Lesson Overview 0:14
  • II. Product Markets 1:31
  • Types of Market Structure 2:47
    • Perfect Competition
    • Monopoly
    • Oligopoly
    • Monopolistic Competition
  • Perfect Competition 5:35
    • Price-Taking Firm
    • Price-Taking Consumer
    • Perfectly Competitive Market
    • Three Characteristics of Perfect Competition
  • Production and Profits 9:12
    • Optimal Output Rule
  • The Industry Supply Curve 12:27
    • Definition of Industry Supply Curve
    • Shut-Down Price
    • Price Above AVC
  • The Long-Run Industry Supply Curve 18:01
    • Definition of Long-Run Industry Supply Curve
    • Example Graphs
  • The Effect of an Increase in Demand 25:19
    • Increase in Demand
    • Increase in Demand Raises Price and Profit
  • Perfect Competition in Long-Run Equilibrium 30:45
    • No Economic Profit
    • No Firms Enter or Leave
    • The Market is Always Right
  • Perfect Competition Making Short-Run Profit 34:00
  • Perfect Competition Incurring Short-Run Loss 38:57
  • Summary of Profitability and Production 43:20