Microeconomics Unit 3 COMPLETE Summary - Production & Perfect Competition

[@arjundulam6354]

Omg, you summed up 2 weeks of mind-numbing lectures into 20 minutes of fast-paces learning. You’re very talented.

[@ReviewEcon]

My own lectures can get there. You're too kind. Thank you! Good luck with your exams!

[@Ogbrainded]

@@ReviewEcon i think i failed my exams...

[@ReviewEcon]

Oh no!! 🤞🤞🤞 You did well!

[@user-nk8zx1yw8s]

Thanks for teaching 3 weeks of class lectures in 20 minutes

[@ReviewEcon]

You're welcome! 😀

[@user-nk8zx1yw8s]

@@ReviewEcon Learned the whole unit in a couple days because of poor time management, but I got a 90% on the unit test due to your video. Thanks so much!!

[@ReviewEcon]

@@user-nk8zx1yw8s That's awesome! Way to go!

[@morrish044]

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[@albusdumbledore6669]

Sometimes I feel pity on this world who don't respect the real talent like you. Dear Brother you deserve more recognition and thanks for everything.

[@ReviewEcon]

Thank you so much for the kind words! They mean a lot to me.

[@krispotato1409]

I very much agree with you @Albus

[@fabiohaiduc9984]

I always come to you for the Unit reviews, which are very effective. 2x speed makes 5 class periods of information take 10 minutes and everything is clear and makes sense. Appreciate it.

[@ReviewEcon]

Perfect! Some people think I talk too fast, others think I talk too slow. Speed adjustment is the key! 😄

[@atharvadharphale5710]

These videos are awesome! Thank you so much, this is helping me a lot to prepare for my Econ test!

[@ReviewEcon]

Good luck with that test!

[@tubbs2132]

I've been watching these in place of my online review classes, you have a good talent for teaching.

[@ReviewEcon]

Thank you! Good luck with your exams!

[@MelissaFortune]

Brother you are a God send sir!!! I've been in college all my life I enjoy school and as an entrepreneur I just go to classes to make sure I'm better at my offerings in the market that being said this was the first class of all of the classes that I flunked given the teacher was total no response so any questions were never addressed by him. So not only am I put output thousands of dollars because I'm an out-of-state client with my GPA and with my lack of degree because that was the last class I was waiting on to pick up a degree I found your channel I'm so appreciative and graphs is what's killing me because for whatever reason although I'm an intelligent I cannot get these economic graphs down it's like no matter what I could think that I understand I try to put it on paper it's just doesn't work out but finding your channel has been such a blessing thank you thank you thank you thank you

[@ReviewEcon]

I'm sorry you haven't had great success so far, I sure hope my videos are helpful! I always tell my own students. Economics (at least micro and macro principles) is extremely difficult... until it's not! Then, it's easy. When it clicks will be different for everyone, but you can definitely get it. I wish you the very best of luck! 🤘😎😄

[@chantalnawar4728]

ive been binge watching all your videos to get ready for the ap exam and i just want to say i really appreciate you reading every comment and answering them in all your videos. its not easy to keep track of so many topics and shows your dedication to teaching so thank you!

[@ReviewEcon]

Thank you very much for your kind words! 😄 Take care and good luck with this year's exams!

[@iyee968]

thank you so much for the clear review! I usually fall asleep when I listen to lecture videos, but this video was so interesting that I got through it with my eyes wide open. :)))

[@FlowerofMidgar-0]

I fell behind because our Exam is at the beginning of May, and im still on module 4, but I didnt do the Module 3 exams, your videos are gonna be the only things saving me from my horrible lessons, and I can actually catch up because everything is easily summarized. Thanks so much, I would be quitting this class if I didnt have these videos honestly

[@ReviewEcon]

I'm glad my videos are helping! Good luck on your exams!

[@MarleyConnor]

You are actually an amazing person, the lessons were very helpful. Midterms in 2 days, still probably gonna fail!

[@ReviewEcon]

You got this! Good luck!

[@rupinghosh5093]

2:21 Shouldn't the Marginal Product be 10 instead of 9? TP went from 36 to 46, so 10/1 = 10. Btw, you make this class so much easier to understand, rewatching them all before the exam. Thank you for making these.

[@ReviewEcon]

Yep! Clear typo in my table. Thank you! I'll make a new version soon.

[@ReviewEcon]

And good luck on your exams!

[@andreamarquez5020]

Thank you so much for helping me out, you explained the information so well!

[@ReviewEcon]

You're welcome! Good luck with your exams!

[@krispotato1409]

You make the lessons very understandable, concise, and fun to learn! Thank you very much brother. also the games in the website are really helpful to test your understanding, kudos to the whole team!

[@ReviewEcon]

You're very welcome! I am so glad you've found it all helpful! I'll let the whole team know (just me 😉)!

[@krispotato1409]

@@ReviewEcon wow, i did not expect that haha 💯

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I'm so happy to find your channel. It's my first year as an econ student and some topics was confusing a lot for me. But not anymore cause the videos are really helps. So much loves from Turkey ♥

[@ReviewEcon]

I am so glad my videos helped! Good luck on your studies!

[@sulagnapalit4951]

5:49 What is the difference between Marginal Cost and Marginal Cost of Labor?

[@ReviewEcon]

Good question! Marginal cost is the change in total cost (or total variable cost) as for producing one more unit (change in total cost divided by change in quantity). Marginal cost of labor , on the other hand, only focuses on the labor portion of the marginal cost. Marginal cost of labor is the wage divided by the marginal product of labor. On the AP Micro exam, these sorts of questions usually assume labor is the only variable cost. Then, marginal cost and marginal cost of labor will be equal.

[@sulagnapalit4951]

@@ReviewEcon Thank you for clearing that up for me!

[@ReviewEcon]

You're very welcome! Good luck with your exams!

[@yijiazhang1782]

me before watching this video: pure confusion after watching your video: woah! I actually have a brain that works! Thank you, thank you, thank you!!

[@ReviewEcon]

So glad it helped! Good luck with your exams!

[@DeRoxanz]

i have my unit 3 test tomorrow, inshallah i will continue with updates, and inshallah allah guides me to an amazing grade

[@ReviewEcon]

Good luck on that test!

[@peltonting16]

this was so helpful, your summaries are perfect! thank you!

[@ReviewEcon]

You're very welcome! Thank you for watching!

[@kourosh5165]

Thank you so much for your hard work you saved me so much confusion this was an amazing review!

[@ReviewEcon]

You're very welcome! Good luck with your exams!

[@marianafernandez5946]

If I pass today it is going to be thanks to you

[@ReviewEcon]

🤞🤞🤞 Good luck!

[@iris-hb9qs]

thank you so much for sharing this amazing resource! its really been helpful for me to review 🥰

[@ReviewEcon]

You're very welcome! Good luck on your exams!

[@gummi3128]

Thank you so much for everything you do. You have literally helped me SO MUCH

[@ReviewEcon]

You're very welcome! Good luck with your studies!

[@xecten9445]

Error at 7:03, TC/Q = ATC on line 3 is incorrectly recorded as 10.3. When Q = 3, TC = 34, therefore ATC should equal 34/3 = 11.33 instead of 10.3 Overall very helpful video series, I've used it last minute before my test and I couldn't be more gracious.

[@ReviewEcon]

Good call! I'll be fixing that for next year. I hope it didn't throw you off too much! Good luck tomorrow!

[@aerospaceguy4639]

There might be a mistake at 16:47 I think you meant to say 'Minimum of ATC curve' instead of AVC, which is what you said. I'm not sure if Its a mistake on my part by I was thrown off sync by this. And it should be MinATC for the LR. Please check on this. Still a big fan of your life saving content regardless!

[@ReviewEcon]

Good catch! I just editted out the word variable to fix it and avoid that confusion. Thank you for letting me know about that error!

[@flamedomegamer537]

Thank you so much I am watching again and again and again ,I have 60 marks for micro plus macro ,in my exam ,40 marks are from other branches , I am planning to get as much as possible from micro,macro, your videos are helping me allot

[@ReviewEcon]

Awesome! Good luck!

[@alimadi9053]

Back here for another test, thanks for the video

[@ReviewEcon]

You're very welcome! Good luck on this test!

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Am also happy with your service sir .

[@ReviewEcon]

Thank you! 😄

[@saraabdii9268]

Once again beautifully explained thank you!

[@ReviewEcon]

You're very welcome!

[@ryanbarber4123]

This guy is the only reason i will pass the AP test!!

[@ReviewEcon]

Good luck on Tuesday!

[@ryanbarber4123]

@@ReviewEcon What is the biggest thing that we need to know for the test?

[@patrickbanda8097]

Thank you very much 🥰

[@ReviewEcon]

You're very welcome! Good luck with your studies!

[@shouldertocryon-j2w]

im so cooked for my test tomorrow bruh. 10/10 video thank you. i'm actively failing micro but if i grind out enough of your videos i might bring it up to a B (and not get rescinded next semester lmao)

[@ReviewEcon]

I wish you the very best of luck! 🤞🤞

[@shouldertocryon-j2w]

@@ReviewEcon i got a 65 on my test!!!

[@ReviewEcon]

@shouldertocryon-j2w awesome! Congratulations on improving so much! 🤘😎 Good luck on in the next one!

[@gerardtyson2274]

7:00 math error, should be 11.3 for ATC when Q = 3 and TC = 34. Not that it affects the lesson, anyway.

[@ReviewEcon]

Thanks for that catch! I will fix that and upload a new version in a few months.

[@nargizmusazadeh8419]

soo soo good explanation>3 keep going!!

[@ReviewEcon]

Thank you! Good luck with your studies!

[@sourpatchkid2691]

this helped so much thank you!!!!

[@ReviewEcon]

Awesome! You're welcome!

[@pranavch17]

Thank you!!

[@ReviewEcon]

You're very welcome!

[@giulias7017]

Ty for the great video!

[@ReviewEcon]

You're very welcome!!

[@RyanReynolds-_-420]

Thanks for this guide. I will most likely still fail but at least since I crammed all in 1 day but I will have some idea on the test. Will let you know if I get a 3😭

[@ReviewEcon]

🤞🤞🤞 good luck! 😄

[@shucktheduck]

lifesaver ong thx man you're a g

[@ReviewEcon]

You're very welcome!

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love ya review econ

[@ReviewEcon]

Aww! Thank you! ❤️ Good luck on your exams!

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Thx for helping me pass my dba

[@ReviewEcon]

You're welcome! I'm glad my videos helped!!

[@luisvillasenor6310]

Thank you I should have watched you for macro.

[@ReviewEcon]

I hear that macro exam was tough! Good luck with micro!

[@luisvillasenor6310]

@@ReviewEcon the multiple choice was brutal. The FRQs were a lot better. It's a bit late for me to buy your review packet, but I'll let other people who take macro/micro to check you out for next year.

[@jurgitastaskunaite6482]

I wish I could give you my professor's salary, you deserve it more

[@ReviewEcon]

😅 Sometimes it just takes a different way of explaining it. Good luck with your semester!

[@arjunmandloi2433]

Thanks for the video. I just have a quick question. What do the P (Y-axis) and Q(X-axis) represent on the graph?

[@ReviewEcon]

P is price and Q is quantity! We use these two labels on most microeconomics graphs.

[@arjunmandloi2433]

@@ReviewEcon Thanks so much for the clarification! I was wondering, what is your advice on understanding microeconomics course information really fast. I kind of waited until there was a remaining month before the test.

[@ReviewEcon]

@@arjunmandloi2433 I'd say it really depends on your underlying knowledge. If you already took the class, you may want to start with the crash review video, to help you identify where you might struggle. Then I would focus on as much MC and FRQ practice as possible. FRQs are available from the CB and some MC practice is on ReviewEcon.com. Good luck!

[@arjunmandloi2433]

@@ReviewEcon Thank you so much man. I will for sure let you know what I get on the exam!

[@7x6v69]

nice videos!

[@ReviewEcon]

Thank you!

[@LifvingConnoisseur]

Wow very informative

[@ReviewEcon]

Thank you! If you have any questions, please ask them in the comments.

[@WarriorBane]

Thnx

[@ReviewEcon]

You're welcome!

[@pxsoul888]

Best channel

[@ReviewEcon]

Aw! Thank you! Good luck with your studies!

[@zenon1177]

19:57 wait so firms only have to pay fixed costs when they shut down? btw thank you for the vids they are really helpful!

[@ReviewEcon]

Yes, if a firm shuts down (different from exciting the market) they lose the fixed costs. Fixed costs are by definition paid when zero units of output. I hope that helps!

[@Thegooddoctor-14]

hiiii great video! ❤I’m not very sure how to find the economic profit in the perfect competition graph😢

[@ReviewEcon]

Find the MR=MC quantity, then go up to the ATC (from that quantity) and make a point. Then go up to the demand curve (your MR=MC point). Connect those two points and draw lines to the y axis, creating a profit box. Good luck!

[@Thegooddoctor-14]

@@ReviewEcon tysm!:)

[@nithinacademy1646]

Very talented

[@ReviewEcon]

Thank you!

[@Deeznutsq]

14:57

[@ReviewEcon]

Perfect competition bookmark coming at you! Good luck on your exams!

[@newfireidk6065]

Afternoon Sir I am currently having troubles understanding variable and marginal cost Whyy isn't the variable cost in 5:09 proportional to the amount of unit produced ? Let's say that the ingredient cost for a Hotdog is 10 dollars That means that the cost for the amount of ingredients I need to make 4,5,6... hotdogs is 40,50,60... Also, is the law of diminishing returns the reason behind the fluctuations of the variable cost ? Too much employees -> Lack of productity / decrease in efficiency ---> more cost to produce one additional unit ?

[@ReviewEcon]

The marginal cost is the change in total cost for producing one more unit while variable cost (total variable cost) is the sum of the variable cost for each unit produced. The variable cost generally increases at an decreasing rate at low quantities then increases at an increasing rate. That's why marginal cost (the change in TC and change in TVC) decreases at low quantities (also due to specialization) and increases at high quantities (also due to diminishing marginal returns). I hope that helps a bit!

[@Spxrkyfv]

So helpful

[@ReviewEcon]

Awesome! Good luck on your exams!

[@Spxrkyfv]

@@ReviewEconThank you

[@slimmyTM]

13:00

[@ReviewEcon]

Good luck on your exams!

[@evelyn1666]

In which chapter did you talk about the two types of efficiency?

[@ReviewEcon]

Allocative efficiency is first introduced in 2.8. Both are discussed in 3.7 perfect competition. For a firm, productive efficiency means the firm is producing the quantity found at the minimum of the average total cost curve where ATC = MC. Allocative efficiency means that the firm is producing where marginal cost equals the price. Where D=MC. In unit 6, allocative efficiency is further defined as being where marginal social cost equals marginal social benefit. In a market with no externalities, the demand curve is the marginal social benefit curve and the supply curve is the marginal social cost curve. Allocative efficiency is also called socially optimal. I hope that helps! Good luck with your exams!

[@ReviewEcon]

In this video I discuss it at around 18:23. 😀

[@drewgoodove3259]

Very helpful!

[@ReviewEcon]

Glad to hear it! Good luck on your exams!

[@newfireidk6065]

Hello sir this is me again I'm a bit confused about profit maximization Like why is the profit in the end maximized when MR intersects with MC ? Wouldn't the marginal revenue you receive just cover the additional marginal cost ? Let's imagine a scenario where a product named 'A' is sold at the price of 2 dollars and the cost to produce it is also 2 dollars How is the profit maximized in this scenario then ?

[@ReviewEcon]

It's true there is often (with real numbers) no difference in profit between the MR=MC quantity and the previous unit. But the graph assumes infinite decimals of units. As long as MR>MC profit increases with that unit (or even fraction of a unit). You can be sure profit is maximized if you continue to produce until MR=MC. You could see questions with real numbers where MR never equals MC. Then, you just produce the largest quantity where MR>MC, but not the next unit where MC>MR. A Firm should keep as long as MR is > or = to MC. A Firm should never produce when MR

[@newfireidk6065]

@@ReviewEcon I finally understand it now Thanks a lot!

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i got my college exam in less than an hour wish me luck

[@ReviewEcon]

Good luck!! 🤞🤞🤞

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so swag

[@ReviewEcon]

Thank you!

[@Interventionroblox]

MR = MC JUMPSCARE 🤕

[@ReviewEcon]

😅

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❤️

[@ReviewEcon]

Thank you!

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Someone who disliked: I DIDN'T STUDY PROPERLY NOO

[@ReviewEcon]

🤷‍♂️

[@bistroshan7198]

😄😃👍

[@ReviewEcon]

Thank you!

[@bwalyachisala2370]

dont you have videos for intermediate micro

[@ReviewEcon]

Unfortunately I do not have intermediate videos at this time. 😢 Intro micro and macro is the focus for now. Maybe some day!

[@slifer4963]

If I pass, I will forever be in your debt.

[@ReviewEcon]

Let's hope for that! 😅 Good luck tomorrow!

[@sharshaf2377]

13:10 😂

[@ReviewEcon]

The best special effects ever! 🤦😅

[@Tactyoh]

Who’s here on 2021 exam day

[@ReviewEcon]

Good luck!!

[@chinachu733]

bro you made me fail the exam

[@ReviewEcon]

Oh wow! I'm sorry it didn't go well. 😢 What was on your class exam that isn't covered in my videos?