Perfect Competition Part 3b: Short-Run Losses - Operate or not

Perfectly competitive firms can make losses in the short-run. The relationship between the price (i.e. the per-unit revenue) and the average variable costs (AVC) is of critical importance. A firm will not supply any of a good, even in the short-run, if the price is less than the average variable costs. If this is the case, it is better for a firm to shut-down (i.e. losses will be minimized). This video is made for 1st year college students or AP/IB Economics students. It focuses on foundational economic concepts.

[@arjunmunshi5852]

SIR VERY WELL DONE PLEASE KEEP IT UP

[@Ellis24432]

awesome video without any fluff thank you for this, Ive taken micro for the third time due to instructors not being able to plainly explain or teach this, thank you again and happy holidays

[@HB-nw2cb]

I have watched so many of your videos, you're the best at explaining concepts in Microeconomics!

[@nirabbariin1151]

Wow great video! 👍

[@NusratJahan-rk5uu]

Thank you..Thank you so much sir..tomorrow is my xm,,and this vedio is realy helped for me..ZAZHAKAALLAH..make a more vedio..keep it up

[@egpalomo]

ATC> P... operate at loss

[@user-cw6cw8pl8h]

The maximum loss a firm should experience in the short run is equal to?

[@homayun8749]

If the firm shuts down quantity will be zero.

[@CynthiaObiero]

Your videos has a very poor quality