7. Competition I

[@skaslam5408]

These lectures are far better than some Netflix series

[@caratinawaiters2590]

So true!

[@georgen9755]

sk you never ever study MIT , clever fellow cheating nicely , your sister is working in MIT, sai ram engineering college, madha engineering college, Jerusalem engineering college and you are going to coaching class or tuition center ? This looks like your neighbours kitchen room ?? why the hell getting coaching from stupid MIT goons , always indulging in sexual abuse and ..............teaching sex ???

[@TonyG-n1m]

Why are you stealing stolen comments?

[@spartancocoman]

Th professor is absolutely brilliant, It's so much better than my microeconomics class

[@MdAmjad-yb6rs]

He is from MIT so there will be difference obviously...

[@akarshgupta350]

Us

[@unrulyastronomer6611]

This is a great series! Prof Gruber is hands down my favorite online economics teacher. I noticed an error (at 32:40) that viewers of this video might benefit from seeing corrected: Total profits at the profit-maximizing point (the point where q=3) is 35, not 45. Here's the math: P=R-C= (30q)-(10+5q^2) = (30*3)-(10+5*3^2)=(90)-(10+45)=90-55=35 not 45. So the discrete answer (P=35) is the same as the continuous answer (P=35) that was calculated at 40:05.

[@logeshwaribabu1954]

can someone wxplain how he finds Marginal cost for each unit and can someone explain how the profit is negative 10 for the fourth unit?

[@mercedesgomez8488]

@@logeshwaribabu1954 It negatives because your max point is 30 so if you go produce one more unit, it would cost you 40 and the benefit would be just 30. So you will be losing 10

[@logeshwaribabu1954]

@@mercedesgomez8488 thank you ❤️

[@DavidRotin]

I was so confused on how he got 45 and what discrete something something was lol

[@itz_ilyas19]

I never attend any regular class of economics but this lecture series helped me a lot to learn about how it works. . Thanks MIT and Professor Jonathan Gruber.

[@tariqzaghal6698]

professor*😂😂🧡

[@debarpanmusib9844]

Great course content, Thanks Professor Gruber, and MIT for making this possible!

[@deilacarolinacastillo3912]

Min 24.35 The best teacher I could have. Never remove these courses

[@MajinXarris]

4:27 this one's straight out of theory of poker. The fact that you bet on the flop doesn't mean that you will have to pay to see a turn card if the odds aren't in your favour or someone else is betting heavy. You gotta let of your hand.

[@jonny_gage]

This is a good lecture and I'm going to watch it in VR!

[@MichaelMok-yk9dc]

In regard to selling your house, actually borrowing constrain also won't matter. Even with a borrowing constrain, one should still not consider the sunk cost - how many you paid for the house.

[@ProWhitaker]

Thanks for the video

[@mitocw]

You're welcome :D

[@harshaagarwal206]

As far as I understood the math for calculating the profit at q=3, the cost function 5*3^2+10=55-90=35. I think that 45 is anyways is not the profit even if consider it discrete.

[@logeshwaribabu1954]

can someone wxplain how he finds Marginal cost for each unit and can someone explain how the profit is negative 10 for the fourth unit?

[@DavidRotin]

90-55

[@Secular485]

You saved my life indie

[@ryanhayes5475]

@6:10 If Steve Perry can hit that B above middle C in "Don't Stop Believin," you're going.

[@iris_1246]

22:45 love that. you speak up my mind prof Gruber🤣

[@MichaelMok-yk9dc]

Error: Ei=NE -(N-1)niu at 18:37, it should be 'Firm demand elasticity equals the number of firms times FIRM demand elasticity minus.....', not 'Firm demand elasticity equals the number of firms times MARKET demand elasticity minus.....'.

[@Ennxi]

sunk costs are well explained and easy, it s just you either get 100 or tickets omit everythin else

[@hkl103]

Where is my mistake regarding sunk costs in the following example: I bought a western guitar for 700€ ten years ago. I found out that I have much more fun playing classical guitar that I bought recently. I wouldn't pay a single € again to buy that western guitar if I didn't have it already. So according to the theory presented, I should sell it even if I only get a few € for it. But I think as long as I get less then 500 € I decide to still play it and decide to continue this hobby even though I wouldn't start it if I hadn't already spent the money. So past expenses do matter because they change preferences which would be different if past expenses didn't happen and I don't agree with the theory. Where am I wrong?

[@Wolfang-c9i]

Dont think that it means that would you make this decision again, think of it like, if you HAD to buy it, what is the maximum amount of money you would be willing to spend, even if you want to buy it to resell it later on. the whole is that, say you didn't buy the guitar, its retail price is 700 euro and you find it somewhere selling for 400 euro, there is demand for the guitar at 700 euro so logically, you would choose to buy the guitar at 400 because there is someone willing to buy it for 700 to whom which you can sell it to for. if you say that I wouldn't even buy it for 400, then it wouldn't be the most efficient choice and would delve into behavioral economics

[@hkl103]

@@Wolfang-c9i thanks

[@krissp8712]

14:00 yay for the last session of this course!

[@uditabhattacharya2824]

28:08 till end as profits per unit needed for visualization DO LECTURE QUESTIONS FIRST

[@pran-ker]

What hpns if there are multiple opportunity costs? - Do we take average or - Highest opportunity cost, etc

[@zyne8087]

We take the highest opportunity cost

[@yunusemreyazc6985]

opportunity cost means the next BEST alternative you give up when you make a choice, so there can not be multiple opportunity costs.

[@aleksandrajadczyk9981]

Maybe I am wrong about it (and I haven't watched the lecture till the end yet) but wouldn't you try to sell the tickets more expensively instead? Because there may be no more tickets available to sell officially and there is only second circulation or something?

[@syazwaninorizam2226]

I don’t understand much because of the language yet he’s better than my lecturer…

[@ichbinraghu]

Small Correction - Subject is more on the Cost Function rather than Competition, can you rename to Cost Function series . Rest absolutely Sinc with my course .

[@sahilkushwaha5864]

22:00 ❣️

[@ObsetanHurisa-hz1ej]

Wonderful lecture

[@teachmetelugu7320]

9:00 perfect competiiton conditions

[@chongkanngaig8s-062]

Bravo!

[@sitrakamatthieu]

14:39 "Babe ...we need to go to Paris see the Eiffle Tower replicat market!"

[@jpmcmullan8666]

This guy is nuts, Journey is awesome

[@lennon_richardson]

🙋‍♂️If the marginal cost to produce the last unit equals the sales price, wouldn’t that unit be sold for zero profit?

[@sriramsriram7631]

Thats the limit like ceeling for how many units a firm should produce if you produce more you will be loosing money if you produces less you are missing the marginal revenue so that's the optimal level

[@lennon_richardson]

@@sriramsriram7631 I understand all that. My question is still unanswered. Say you produce 1000 units. If the cost to produce the last unit equal the sales price then the profit on that unit is zero, correct?. Wouldn’t it be better just to produce 999 units and make a slight profit on the last unit you produce?

[@mooky01]

@@lennon_richardson Just reading this. Thought Id give my intuition for it: You also do not lose any money by selling the thousandth unit. Total profit would be the exact same for 999 as for 1000 units. You merely sold one more item. So, mathematically, I do not really think it matters. Still, as a producer I would rather also sell the thousandth unit just because I then have higher sales numbers, one more consumer in contact with my goods, etc.

[@leogaussbell1622]

6:40 competition I

[@libsby2573]

Hi, what is positive competition?

[@zafrulsiddique]

How can a 45 degree demand curve have a constant elasticity of -1? He is confusing slope with elasticity.

[@zhuwenhao4852]

the residual demand notion was wrongly explained. overall good lecture though.

[@RidinCountry]

Wonderful lecture!

[@MohdAbuNaiyan]

Excellent course but the instructor should slow down we he talks. Regards

[@logeshwaribabu1954]

can someone wxplain how he finds Marginal cost for each unit and can someone explain how the profit is negative 10 for the fourth unit?

[@libsby2573]

What is positive competition?

[@md.samiulalim158]

good

[@pranamihayaran]

At 33:48, how is the marginal cost 40? Since MC = 10 + 5q^2, MC = 10 + 5*4*4 = 90.

[@nabsungkar]

Hi. The marginal cost is the derivative of cost so it would be 10q, hence for the quantity demanded 4, the marginal cost is 40. Hope it helps

[@shortsandquizzes1640]

Zyakhala on loud speaker

[@libsby2573]

What is explicit cost

[@MajinXarris]

23:30 Did he really call programmers slaves? Am I the only one hearing this

[@ArunKumar-yb2jn]

Let's sue him.

[@bunnyman6321]

@@ArunKumar-yb2jn How you make out?

[@ArunKumar-yb2jn]

@@bunnyman6321 Slavery is illegal.

[@bunnyman6321]

@@ArunKumar-yb2jn Duh

[@mertaliyigit3288]

Sooo can somebody explain why they cant do the thing explained in 36:10 ? I'm curious and scared I wont find it in later videos

[@suryavadlamani1896]

This is cartel formation, in practice it definitely happens but the different members of the cartel may start undercutting each other by making deals separately with customers. The best example for this is oil exporting, the product is roughly the same, but oil exporting countries got together and made an organization OPEC to manipulate the price. The professor wanted to discuss this in later lectures I think.

[@AleUnbound]

Dude talks too much, all of this can essentially be simplified but they over extend it so they can monetize the speech more.

[@arinzechukwubuike]

Sunk costs?

[@ac9832]

Costs you have had that you can't get back. You should ignore these and only make decisions based on the future alternatives. He had two alternatives: 1, Go to the consert, something that was wortht 100$. 2, sell the tickets, something he should do if it becomes worth more then alternative 1 (100$+) Hope it helps :)

[@vishavejeetsingh4193]

Split milk

[@muhammadsiddiqui2244]

Sunk Cost Fallacy is a very common logical fallacy people do. It is something very similar to passion or consistency. It is a logic which says that because I have spent on this so I will keep on doing it.

[@ArunKumar-yb2jn]

@@vishavejeetsingh4193 No. It's spilt milk.

[@awhimdhwani]

His lectures are GRIPPING