From Short-run to Long-run in Perfect Competition

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

[@alicewong4857]

You are amazing. My university should replace you with my current lecturers whom i understand nothing from!

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Alice Wong me to, and belive or not i am in yyale university

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[@educateentertainyourself7092]

Alice Wong the number 1 requirement to teach in college should be THE ABILITY to explain and convey info CLEARLY!!! Who cares if they published. Students pay life savings TO LEARN

[@juddin03]

I read the chapter on this and then watched your video explanation and everything just connected so swiftly. Amazing overview!

[@esham4474]

I go to the top university in Canada and this video helped me more than my professors and TA's ever could. Thank you.

[@indigo321]

I have my economics exam this week, and your videos have completely saved me! Thank you so much!

[@prats87622]

one of the best explanation i had every watch on any youtube channel thankyou for shearing knowledge with us

[@waishanyan9736]

You are the clearest and most concise speaker in all of these econ videos on youtube! thanks!

[@loandang8717]

Waishan Yan

[@22Xter]

Ok, so I don't post very often, but I could not resist this time. This is an amazing lesson, extremely informative and easy to understand, I dare to say this was much better than the Intro to Economics by Lipsey, 2015! Dear Author, please, continue doing a great job and keep educating us. Well done.

[@carissathomas828]

Awesome video! I was so lost in my class, but you helped me understand these concepts for my tests thank you!

[@deraljincortes]

THANK YOU VERY MUCH!!! it's my exam tomorrow and i'm still struggling with PC graph, I've been asking around but it makes me more confused & i've been cursing all the lines and curve since morning , & I've seen diff lessons of eco online until i clicked this video of yours. You just don't know how you've help me...you're a life saviour!!! CHEERS!!!

[@valeeshaknight8638]

This was so extremely helpful. Thank you Jason you ROCK!!

[@samromberger4422]

You are a very good tutor! Seriously these videos make it so simple.

[@glenhael]

Best teaching and explanation of economics PERIOD!!!

[@whitney32592]

Thank you so so much! You have helped me more than you will ever know. I really appreciate it.

[@Killathas]

OMG, this video is absolutely amazing, still helping people in 2018!

[@SuperJameal]

you are brilliant, i understand everything for the first time ever!!!!!!!!

[@natashanaidoo9539]

amazing thank you. you made it so simple that i can't even believe it...

[@kayodeadebayo5477]

I benefitted extremely from this presentation. Thanks so much.

[@hehehehahaha3150]

Wow!!! Thanks so much..... I never usually comment on videos but this deserves one!

[@clauchelles]

You're so awesome, and your teaching is super clear. Thank you very much for the enlightenment! I understand this concept now thanks to you :)

[@doireannm88]

excellent videos ive watched all your videos on markets and I understand all now aswel as the cost curves thank u :) hopefully I will get a first in micro this semester!

[@lizzyberg1082]

i dont have enough words to thank you sir!!

[@SuperCraziiFreak]

this is just brilliant! THANKYOU so much. everything makes so much sense, never listened in the lectures phaha. love your videos.

[@njugushjohnny4797]

great video! I had an exam this week and this has helped a lot.

[@tinaqyj]

thank you!!!! very clear, i learned more than in class! thank you !

[@kNghgfdnku]

wowww ur video is soo amazing!! u just saved me from the final exammm thxxx

[@c1esharma985]

Thank you so much sir, the way you teach is really easy to understand..:D....this video really helped me alot.

[@christianbarahona4707]

Thanks to you bout to ace my ap micro ch 23 test

[@claudiatiefisher1400]

Hello Jason Welker! Great video! Could you let me know what software/hardware you are using to produce these videos? The writable grid, both freehand and tools? I would like to upload some math videos and this would be brilliant. Thanks!

[@user-tw3tr6zw6x]

you speak is really well,and I can understand the graph

[@londiealday1229]

Thank you for the videos! Can you please clear something up for me on the last example where the MR is lower than the ATC, at 18:10 you mention that at each unit of output that they produce and sell, they are selling it less then it cost to produce, but I was under the impression that when the AVC is lower then MR in this example, that they are still covering the cost to produce. Can you please clarify this for me?

[@BenMousavi]

Thanks a lot sir, it was one of the best explanations that I heard. GBU

[@arturkesablian470]

Thank you, Thank you, Thank you!!!!!!

[@bless00]

wow soo easy to understand, God bless you

[@vinayak186f3]

Crystal clear explanation , thank you sir 😀

[@CharmaineMudedeGandiwa]

u r a great teacher.thank you

[@marksmade4485]

Hi Jason, Who's the group on the introduction? Really sounds like a great track.

[@tracygeorge63]

This video was excellent. Thank-you. :)

[@1dons]

Thanku very much...Was not able to understand from book since long...

[@jennybak3073]

Best teacher ever

[@dome123dome]

I will wreck my test thanks to you! thank you!

[@BenMousavi]

did you wreck it?

[@egodiifemnacho8820]

So like I’m satisfied with what I learnt from this video Thanks a lot👍🏻👍🏻

[@lemanshahin2398]

Perfect explanation 👍🏻

[@penlywilson6851]

Thank you sir for the those presentation, I really like it, I wish that you were my lecture here in the Solomon, I hope to learn more from your lecture

[@Johny5730]

excellent clip...it really helps me to understand a lot....thanks :)

[@isaacshin7412]

"Perfect" not "Pefect". He should change it so more people can find this video

[@suprabheballary]

Thank you so much!

[@waleedbasheer]

Perfect video.. Thank you very much.

[@adsreached]

Thank u so much man.!!

[@briansibusisomahlangu]

Amazing!!! :) :) Very helpful

[@jjbotha6242]

Fantastic!

[@aumnamahshivaya6086]

Etla saadhyam idantaa meeku🙏🙏

[@petertraulsen600]

So I get why the price will return to the original equilibrium, but what about the increase in quantity, will that not affect profits? Or is it because that Q=ATC, so that there will be no economic profits?

[@JoaquinStrings]

What happens in the short and long run if the average variable costs decrease?

[@brianescobar4301]

Thank you!

[@ernestetusi-ehimen1416]

this video was awesome thanks

[@princeg.8834]

Great explanation

[@Borzacchinni]

extremely good video !

[@serialglobetrotter]

Thank you sir , people like should live forever :-) ! I want to complete microeconomics please suggest me how do I go through your videos sequentially ?

[@JasonWelker]

Just watch the Playlists on my KZbin channel!

[@serialglobetrotter]

***** Thank you so much for your reply

[@moriahgrace1234]

Please, be my professor D:

[@ilovethisvideo741]

what are you using to make these videos? and what are you writing on?

[@Katherine-bs1su]

thanks a lot!

[@mohammadwahib2364]

thanks for the video.

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thank u sooooooooooooooooooooooooooo much!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! I always follow your videos and thses are veryyyyy helpful! thank u soooooo mmcuh one's again

[@munaomar9955]

Very helpfulThank you very much

[@jymdaddy1465]

Wow, I understand it completely now. Thanks!

[@ChrisAllen102]

I now understand!

[@skepo22]

very very helpful........thanks a lot

[@otlotlengmosiapoa2104]

well explained

[@BrianFaure1]

At 4:15 is it true that Qef is identical for all firms in the same market or can't some firms have different MC curves leading to different Qef locations, in which case the equation at the bottom at 4:23 would have to be a vector sum rather than a product of constants?

[@JasonWelker]

The assumption of the PC market model is that all firms produce identical products and face identical costs of production.

[@BrianFaure1]

Ok got it, thanks for the response, great video as well.

[@petertraulsen600]

In perfect competition MR=AR, which equals Demand?

[@sumedhasengupta7768]

Thank you for this.. text book reading is boring, this is a great substitute with equal benefits.

[@LinhVu-ru4wx]

Hi, thank you for your vid. I dont understand why the firms enter and exit the industry can lead to a point at which P=ATC cuz I thought that, for example, at the beginning, demand's up, price is up which result in the positive economic profit, then more firms enter the market, supply goes up and its curve is shifted to the right, price goes down, and it can be down to the point lower than Pe, or well above or a bit above Pe (Pe in your video), so it can still generate economics profit, but you said in your video that it will go back to the point where it starts (at which economic profit is 0). Also, why did you draw ATC touch P from the begining? Thank you so much!

[@JasonWelker]

As long as any firms are earning economic profits there is an incentive for others to enter the market. And since there are no entry barriers, firms will do so until the price is equal to the minimum ATC and the best firms can hope to do is break even. Hence, in the long-run, all economic profits and losses will be eliminated by either the entrance or exit of firms from a PC market. At least, that's what theory says!

[@mroseshell]

thank you

[@lufeiwang4538]

A good teaching video I can understand it

[@chanthramohan9112]

How can saw AVC,ATC at the different in the long run?

[@thelstan8562]

very helpful!!!

[@diablo2v2]

I like that you used brad sucks music

[@aldrizafariq7005]

what will happen if the supply are decrease in the first place?

[@bishwaskafle6262]

Gr8 explanation

[@debajitguha8414]

Thank you sir

[@mxnni7265]

Thanks you

[@SatyaSahoosatyaranjan]

really nice

[@megs2710able]

Helpful! (Y)

[@z6129797]

thanks

[@1dons]

Very nice service to humanity , ur lectures r being watched in whole world ..can u please give the proper order to understand whole economics from ur all videos? which videos to watch first n all ? Are all lessons covered by u ?

[@JasonWelker]

Yes, please follow the playlists on my channel: kzbin.info

[@kunjal999]

what song is that?

[@rakhee369]

OH my god ITS awesome

[@SuperJameal]

still dont get how to tell if a firm is in a long run or short-run. help!!!

[@Mzbcon]

In perfect competition, If the firm is operating in the long-run it is not possible for it to be making abnormal profits and will only make normal profits. Also, the firm's will be productively (operating at lowest average cost) and (allocatively price = marginal cost) efficient.

[@nitzarosario9685]

Thank youuuuuuuuuuuuuuuuuuuuuuuuuuuuu

[@kikirone4981]

but the music at the beginning is prime

[@judehzeyad9002]

Amazing (y) (y)

[@aumnamahshivaya6086]

Namaskaram

[@ariasijiali1689]

We are using ur textbook her in china!

[@areebajamal224]

where is that previous lesson! :(

[@JasonWelker]

All lessons are organized in Playlists on my channel.

[@areebajamal224]

Im studying with the help of your lessons only as im not getting any professional teacher! Thats why im facing some problem because these lessons are not according to the sequence of my A level syllabus provided by CIE. Do you teach classes online?

[@JasonWelker]

+Areeba Jamal Sorry, these are posted in order of the IB syllabus. Never taught A levels. Hopefully you can sort it out!

[@areebajamal224]

Okay sir, thanks alot!

[@lebogangmthweni8991]

edutainment

[@bungus49]

STONK TIME

[@hasha9]

But in reality there is not a single perfectly competitive market in the world. So in the long run there can be economic profit/loss

[@fewfaf4214]

Does this mean you cant make money in a perfectly competitive market?

[@JasonWelker]

Sure you can. You can cover all costs and make a normal level of profit. If abnormal profit is earned, competitors will enter the market and take a chunk of your profit for themselves.