Perfect Competition: Long-run Equilibrium

[@novejotbal5656]

it's 2020 and this video is saving my life before finals

[@noname-fi4qn]

I am so grateful for these videos. You are saving me before my final which is an hour apart from my macro final so I could not study for it at all. Bless you and your gene line for generations :P

[@jalenmcintyre1660]

I agree 😄, life saver!!

[@EconomicsinManyLessons]

The easiest way to see where the minus sign comes from is to rewrite 18/q as 18q^-1. The derivative of 18q^-1 is (-1)18q^-2, which equals -18/q^2.

[@Hello-gn3ec]

u are such a life-saver man thankyou so much for what u are doing

[@meagain919]

Love your vids man, and your kid :) Helps me to understand a little better

[@tkhan2354]

Thanks a lot! Very helpful video!!!

[@chuchotersaule]

Thank you!! You really clarified everything up, I really really really appreciate this!!

[@josephjohns1336]

What does the 0.5 in front of the (q1) represent at minute 2:04 in the video?

[@EconomicsinManyLessons]

It is just a parameter that shows how the quantity of output affects production costs. If the q term was not squared and the cost equation was C = 18 + 0.5q, the 0.5 would represent marginal cost of prodiction, each additional unit of output increases total cost by $0.50.

[@sumasuma6805]

How to identify from problem/question the long run and short run? When not mentioned clearly.

[@cyndara88]

I found this video very helpful. Thank you very much!

[@whenyoulovejeonjellybutyou7962]

Thank you for this vid! Really helpful!!

[@azlifestyle5316]

Perfect. Thank you.

[@EconomicsinManyLessons]

You are welcome!

[@BigScaleBaller]

Perfect explanation and to the point!

[@hehehe9618]

If the firm were under the constant cost industry, would the process of getting the firm's output level and equilibrium price change?? Or would it still be the same? Thanks!

[@NCR-bk3yy]

Great video, was a lot of help.

[@ip022]

You man are awesome!

[@biancasatria4193]

how do you find the Q when you don't have one in the question?

[@astroxin]

In my class we were told to find where AVC=MC where MC intersects with AVC minimum. But here you do ATC, which will yield a different value. Can you explain when do to either?

[@EconomicsinManyLessons]

The shutdown point is where AVC= MC. In the short-run,if the price falls below the shutdown point, the firm should produce nothing (Q=0). Anytime a firm is making a negative economic profit you should check whether the P is below the shutdown point. In the long-run, a firm has to cover all its costs, so the price needs to be greater than or equal to ATC. For perfect competition, because of the no barriers to entry or exit assumption, above or below normal profit is eliminated, so firms just make a normal return. When firms are making a normal return/profit (i.e., zero economic profit), P = ATC. Moreover, perfectly competitive firms must be producing at their minimum ATC (taking full advantage of all economies of scale) to make a normal return,which is why this video finds where ATC is minimized.

[@Krixinee]

Help me : Describe the initial equilibrium long-run of the market and firm. Make sure to use the relevant diagram. Plss

[@senuri554]

great

[@EconomicsinManyLessons]

Thank you!

[@tomisthlm]

WHERE THE FUCK DID YOU GET THE MINUS FROM MATE?! at 4:54

[@mahammadsadrzada6787]

Thank you!

[@dscotttherapper6532]

thank you

[@Explorer982]

8 minutes of gold.

[@ChandanKumar-zc1mi]

Same 😅

[@aassbbcc]

Your voice... Sounds like Trump's