equilibrium in perfect competition

explains why firms in perfect competition cannot sustain supernormal profits into the long run

[@MrCurpy]

This year, at the age of 44 i decided to do my degree. Thanks for making this understandable. Greetings from South Africa

[@AruSharma04]

You, sir Are a lifesaver with a British accent, that too

[@Kisswish1]

I love you sir!!!! I swear you are the best I don't even need to view any other videos you explain this so well!

[@rachmacniven]

Great teacher, got me through my International Baccalaureate and now getting me through my degree! thank you so much, please dont stop! :)

[@djselcius]

Hey Phil, I have a test tomorrow on perfectly elastic competition and profit maximization etc. Your video has really cleared things up for me in a concise and easily accessible manner, thank you.

[@74dorset]

Just had my exam today and I want to thank you again as that question that I askedd you came up!!! Cheers man.

[@PaulyCesp]

I am preparing for the CFA and I read the perfect competition chapter before watching this video and you have cleared all those questions I had in mine. You are the best!!!

[@Sarahrose6660]

Got my exam tomorrow, and your videos are helping tremendously with some last minute revision - thanks!

[@wldilkooheji]

@pajholden I'm an IB student who was struggling as hell to make it through my 2 years... you came along and now my predicted is a 6! Thank you soo much! You honestly saved my diploma!

[@gazakhstan]

thank you very much, that clarifys it for me! very good luck to you aswell mate :)

[@vee968]

You are a legend! Thank you so much.

[@tehcrazysoccergirl]

Absolutely love your content.

[@reggie1999sb]

Big up Paj, saved my economics lessons and my life #depression #suicide

[@sproggdaddy]

you're awesome... :) great teacher/lecturer

[@Tony000888]

Thank you so much for this video, great learning/revision material.

[@lordfarquadonaquad2277]

Honestly I could've got chlamidia but instead I got that economics knowledge 😤😤😤💪🏾💪🏾💯💯❤️❤️❤️

[@hussainkhalid9936]

u r the best! i am writing from Saudi Arabia...:)

[@annie8nicole]

i just love your videos they are so helpful thank u so much :))

[@tpontoh]

Just wanted to mention that there can also be a loss in the short run, when the average cost is bigger than the price. And I like your explanation, because it involves industry as well whilst during the lessons our teacher in A2 only discussed perfect competition for the firms only. It wasn't new what you have explained, but it allowed me to look at perfect competition from broader perspective.

[@ashapp8842]

amazing. clear and straight forward

[@phausknecht]

I just wanted to thank you for offering this very informative video... With any luck, I will ace my micro exam tomorrow.

[@ratonL]

Finally, I understand thanks to you, you´re very good...MY teacher sucks...

[@stevenkirby2783]

this video is absolutely incredible. far better explanation than any tutor her win the UK! please upload some more pajLAD

[@EconAlannah]

Where he starts out, the firms are on the upward-sloping portion of the ATC curve; that is, they are straining capacity. If the technology stays the same, the efficient plant size stays the same, so yes -- they go to an output size that fits their plant size. They don't want to, but they're forced to by the increased competition.

[@reenz1231]

ive learnt so much from you thanks alot :)

[@jamaicaboy544]

So what if supply falls. im assuming just the exact opposite ?

[@uqbe]

Brilliant, mate! Please try to give an advanced explanation in the future if there are any. Thanks, Phil!

[@EconAlannah]

This is the first time I've logged on to KZbin and found an econ video instead of some kind of soft porn as the "video being watched." Mr. Holden's lectures are great; I link to them for my online micro principles course.

[@benmahon4964]

love your work

[@mmmelx]

You make revision much less daunting! Thank you!

[@teaQ7]

do we consider average variable cost (AVC) or average total cost (ATC) in short-run?

[@kylezpottzrap]

i think i get this but i dont know what the mc mc ar lines all stand for???

[@waveboi93]

YOU ARE THE MAN!

[@5tarStunna]

thanks, same here, instead of opening a book a came on youtube. i find this more interesting than books

[@ridwaanulhoque8306]

In the name of the father the son and the holt spirit I big up that potent nose of yours and your knowledge. Keep it real my brother from the white supremacist mother 😤😤😤💯💯💯🅱🅱🅱❤️❤️❤️

[@cri8tor]

Snap! I just left a comment asking you to post a vid about this subject and here it is. Make that another "A" for me next week. Thank you so much again.

[@TheSimplylk]

thanks for the vedio . Would you kind be able to explan the short run industry supply curve?

[@Charlieboy4444]

Even my teacher recognises that you're better than he is. At the beginning of every topic, if there's something difficult to explain then he just says "Boys, let's get Big Phil Holden to explain it"

[@74dorset]

Is the reason the MC curve swoops down then up because of economies of scale? Anyone?

[@tamskisker]

oh my god you are awesome thank you!

[@zz87]

Great explanation! Thank You very much!! Will You add some more lessons?

[@lordfarquadonaquad2277]

Slob on my knob like corn on the cob

[@Popofkala]

thank you, well understood. could you please answer this question for me Consider a world with saving and investment. What will be the economic consequences of an improvement in the investment technology.

[@Whatsjonosaying]

because of perfect knowledge a firm cannot sustain abnormal profit since a firm could just implement what ever advantage the firm has to their own firm.

[@Gee0695SCFC]

Cheers Paj

[@Heavymetalisforlife]

where do you teach?

[@NumbNuts93]

2:49 perfect line! how does he do that? My graphs always look really bad

[@wrules]

You failed to mention barriers to e xit which is obviously linked into barriers to entry. Thanks for these videoes, everytime a few days before my exams i always go through some of your videos.

[@TheSola96]

very helpful, thank you

[@gazakhstan]

Hello, i have a Unit 3 Edexcel Economics exam a week today, in fact this time next week it will be 15 minutes away :A But, why is it only in the short run that abnormal profits can be made in PC? i assume it is the low entry barriers??

[@hwt2009]

what would be useful is a video on the Treasury intragovernmental debt to explain its components and how it is put together

[@shuangyang66]

i totally suck at micro econs. and i have an exam ina week's time.... do i still have enough time to save myself?

[@jaciecutie94]

You rock.

[@dankgamer5949]

👏👏

[@E3tiger]

Thanks you might just help me get an A in my exam on monday!

[@madclown16]

abnormal profits = supernormal profits? someone please help me clear up this terminology!! thanks!

[@TheChelseaFan119]

so helpful!!

[@H20splashX]

IB economics? Paper 2 question 1?

[@74dorset]

Thanks.

[@EatLotsOfCurry]

If in the long-run, firms are just breaking even, why even stay in business?

[@Poseidon143]

so basically, due to 'no barriers' firms fight all the supernormal profit off? Leaving no supernormal profit to be made in the long run.. yes??

[@lilman613]

saved me from my micro exam!

[@GIOGS]

MC and AC curves A2 ?!

[@Mediafrenzzy]

Mate I wish you were my teacher!

[@rkhs90]

when you say, individual firms have decreased Q, but the overall industry have increased Q, its not hard to understand as although there is decreased Q, there are more firms in the overall industry therefore increase overall supply (see 5.13 if you dnt know what im talkin about lol)

[@MalikBN3]

No, thankyou very much!

[@cindi8797]

The demand curve-increase and decrease- what?

[@asasin1998]

+CINDI If the firm is making super normal profits, demand for the firms good will decrease, this is because the supply of firms in the market as a whole increases (since there no barriers to entry, new firms enter the market with ease)..........On the contrary if the firm is making losses, demand will increase, as firms exit the market.

[@pajholden]

@Charlieboy4444 Thanks Charlie - say hello to your teacher for me.

[@naveen1987may]

sir, i am sorry to say that but you must see the video of "Apeconreviewer". you can search this video by the name of -Microeconomics of perfect competition Part 1

[@H20splashX]

no, it's because of the law of diminishing returns!

[@hduoawbdo221]

Phil Holden for president :D

[@dannydenail]

You are good!!! My tutor is horrible compared to you.

[@WorthlessWinner]

Firms can enter or exit the industry in the short run but cannot in the long run.

[@Fonseca429]

What if a firm lowers her price? At request of a consumer?

[@jackwebster4714]

They would make a loss, they're already selling at the lowest price they can at the bottom of the AC curve

[@Fonseca429]

Jack Webster Thanks.

[@liverpoool4lyf]

I like the potato example ; )

[@cindi8797]

The Perfect Competition market is sort of confusing a little. I would probably choose the Oligopoly market.

[@StreetDancer171]

But...but..but the video is about perfect competition? Not an oligopoly?

[@anubhav1997]

practise

[@Gghhhkkklll]

Badman

[@adijo123]

@abdullah7200 Perhaps you should learn that it is 'economics' first. Just kidding xD. Great videos Sir! I study economics without a teacher or a university too xD

[@Whatsjonosaying]

A2.........

[@74dorset]

No, EF110 DCU.

[@lordfarquadonaquad2277]

Paj daddy

[@lindsay_]

i thought you were british

[@dara1rock]

8 people don't do economics

[@ThatCynicalBrit]

A greek god

[@nishu23gupta]

@TheSimplylk u cant spell. its 'video' not 'vedio' haha

[@nustada]

I wish Obamacare supporters were forced to watch this.

[@1mstr8todapoint]

*Perfect* competition.

[@zz87]

Great explanation! Thank You very much!! Will You add more lessons?