Long run supply when industry costs are increasing or decreasing | Microeconomics | Khan Academy

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In some industries, the number of firms in the market has an impact on the costs that firms face. For example, when firms have to compete with each other over resources, firms' costs increase as more firms enter the market. But in other industries, more firms actually lower costs for firms. Learn about the implications of each of these situations on the long-run supply curve in an industry.
AP(R) Microeconomics on Khan Academy: Microeconomics is the study of individual decisionmakers in an economy, such as people, households, and firms. Learn how markets work, how incentives drive decisionmaking, and how market structure influences market outcomes. We hit the traditional topics from an AP Microeconomics course, including basic economic concepts, markets, production and costs, profit maximization perfect competition, imperfectly competitive market structures, game theory, factor markets, and income inequality.
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[@siddhantwaskar8512]

Great explanation! Loved it!

[@jaron808]

I didn't even understand the title of the video

[@kinjalraval4857]

Jaron Schreiber same mom made me watch

[@theskeptic8489]

when costs are constant other firms don't want to enter; when costs are vary, especially when they decrease, new firms want to enter. if they are high then firms leave. The entry or departure of firms affect the costs/prices in an industry.

[@Diabolical3010]

What do you not understand?

[@safaa4034]

why is there economic profit at 4:00. the MR is less than the MC+ATC.

[@assil110]

You have a new Price (new MR)

[@hinahbashir]

When does the slope of marginal cost change? And further what would be effect of that on its supply curve?

[@akshitsaini1973]

Why would MC curve change?

[@pranjalbansal6321]

When more firms enter the market to enjoy the economic profit the industry cost will either increase or decrease leading to change in the MC curve. Also the influx of more firms will lead to change in supply curve not the change in MC curve.

[@MRIANNS]

thanks

[@sandipanmondal7287]

That helped

[@olivezoo]

P=MR // WHY?

[@fluffowl8335]

Because revenue is p*q (price x quantity), so revenue is going to increase by the amount it is sold for (market price).

[@Galaxi-AT]

I'm gonna be rich

[@abdurrahim-qq7yu]

man likes apple