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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[@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!

[@waishanyan9736]

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

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Waishan Yan

[@valeeshaknight8638]

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

[@prats87622]

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

[@carissathomas828]

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

[@glenhael]

Best teaching and explanation of economics PERIOD!!!

[@Killathas]

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

[@whitney32592]

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

[@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!!!

[@SuperJameal]

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

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

[@samromberger4422]

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

[@natashanaidoo9539]

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

[@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.

[@kayodeadebayo5477]

I benefitted extremely from this presentation. Thanks so much.

[@lizzyberg1082]

i dont have enough words to thank you sir!!

[@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!

[@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 :)

[@njugushjohnny4797]

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

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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.

[@tinaqyj]

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

[@SuperCraziiFreak]

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

[@user-tw3tr6zw6x]

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

[@christianbarahona4707]

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

[@BenMousavi]

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

[@vinayak186f3]

Crystal clear explanation , thank you sir 😀

[@1dons]

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

[@bless00]

wow soo easy to understand, God bless you

[@egodiifemnacho8820]

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

[@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?

[@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

[@CharmaineMudedeGandiwa]

u r a great teacher.thank you

[@tracygeorge63]

This video was excellent. Thank-you. :)

[@lemanshahin2398]

Perfect explanation 👍🏻

[@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!

[@Johny5730]

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

[@arturkesablian470]

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

[@JoaquinStrings]

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

[@aumnamahshivaya6086]

Etla saadhyam idantaa meeku🙏🙏

[@jennybak3073]

Best teacher ever

[@ernestetusi-ehimen1416]

this video was awesome thanks

[@domenica369]

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

[@BenMousavi]

did you wreck it?

[@marksmade4485]

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

[@princeg.8834]

Great explanation

[@briansibusisomahlangu]

Amazing!!! :) :) Very helpful

[@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?

[@waleedbasheer]

Perfect video.. Thank you very much.

[@ilovethisvideo741]

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

[@chanthramohan9112]

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

[@aldrizafariq7005]

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

[@Borzacchinni]

extremely good video !

[@suprabheballary]

Thank you so much!

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Thank u so much man.!!

[@jjbotha6242]

Fantastic!

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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

[@isaacshin7412]

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

[@kunjal999]

what song is that?

[@petertraulsen600]

In perfect competition MR=AR, which equals Demand?

[@munaomar9955]

Very helpfulThank you very much

[@brianescobar4301]

Thank you!

[@skepo22]

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

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thanks for the video.

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thanks a lot!

[@sumedhasengupta7768]

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

[@lufeiwang4538]

A good teaching video I can understand it

[@otlotlengmosiapoa2104]

well explained

[@thelstan8562]

very helpful!!!

[@jymdaddy1465]

Wow, I understand it completely now. Thanks!

[@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

[@bishwaskafle6262]

Gr8 explanation

[@ChrisAllen102]

I now understand!

[@moriahgrace1234]

Please, be my professor D:

[@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.

[@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!

[@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.

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Thank you sir

[@mroseshell]

thank you

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really nice

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Thanks you

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I like that you used brad sucks music

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Helpful! (Y)

[@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

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OH my god ITS awesome

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thanks

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[@kikirone4981]

but the music at the beginning is prime

[@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!

[@aumnamahshivaya6086]

Namaskaram

[@judehzeyad9002]

Amazing (y) (y)

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We are using ur textbook her in china!

[@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.

[@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

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STONK TIME

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