explains why firms in perfect competition cannot sustain supernormal profits into the long run
Пікірлер: 96
@MrCurpy11 жыл бұрын
This year, at the age of 44 i decided to do my degree. Thanks for making this understandable. Greetings from South Africa
@AruSharma048 жыл бұрын
You, sir Are a lifesaver with a British accent, that too
@PaulyCesp12 жыл бұрын
I am preparing for the CFA and I read the perfect competition chapter before watching this video and you have cleared all those questions I had in mine. You are the best!!!
@Kisswish112 жыл бұрын
I love you sir!!!! I swear you are the best I don't even need to view any other videos you explain this so well!
@djselcius13 жыл бұрын
Hey Phil, I have a test tomorrow on perfectly elastic competition and profit maximization etc. Your video has really cleared things up for me in a concise and easily accessible manner, thank you.
@rachmacniven12 жыл бұрын
Great teacher, got me through my International Baccalaureate and now getting me through my degree! thank you so much, please dont stop! :)
@tpontoh13 жыл бұрын
Just wanted to mention that there can also be a loss in the short run, when the average cost is bigger than the price. And I like your explanation, because it involves industry as well whilst during the lessons our teacher in A2 only discussed perfect competition for the firms only. It wasn't new what you have explained, but it allowed me to look at perfect competition from broader perspective.
@EconAlannah16 жыл бұрын
Where he starts out, the firms are on the upward-sloping portion of the ATC curve; that is, they are straining capacity. If the technology stays the same, the efficient plant size stays the same, so yes -- they go to an output size that fits their plant size. They don't want to, but they're forced to by the increased competition.
@Sarahrose666011 жыл бұрын
Got my exam tomorrow, and your videos are helping tremendously with some last minute revision - thanks!
@wldilkooheji13 жыл бұрын
@pajholden I'm an IB student who was struggling as hell to make it through my 2 years... you came along and now my predicted is a 6! Thank you soo much! You honestly saved my diploma!
@lordfarquadonaquad22777 жыл бұрын
Honestly I could've got chlamidia but instead I got that economics knowledge 😤😤😤💪🏾💪🏾💯💯❤️❤️❤️
@74dorset12 жыл бұрын
Just had my exam today and I want to thank you again as that question that I askedd you came up!!! Cheers man.
@phausknecht16 жыл бұрын
I just wanted to thank you for offering this very informative video... With any luck, I will ace my micro exam tomorrow.
@EconAlannah16 жыл бұрын
This is the first time I've logged on to KZfaq and found an econ video instead of some kind of soft porn as the "video being watched." Mr. Holden's lectures are great; I link to them for my online micro principles course.
@ratonL14 жыл бұрын
Finally, I understand thanks to you, you´re very good...MY teacher sucks...
@reggie1999sb7 жыл бұрын
Big up Paj, saved my economics lessons and my life #depression #suicide
@uqbe14 жыл бұрын
Brilliant, mate! Please try to give an advanced explanation in the future if there are any. Thanks, Phil!
@Charlieboy444414 жыл бұрын
Even my teacher recognises that you're better than he is. At the beginning of every topic, if there's something difficult to explain then he just says "Boys, let's get Big Phil Holden to explain it"
@hussainkhalid993613 жыл бұрын
u r the best! i am writing from Saudi Arabia...:)
@5tarStunna15 жыл бұрын
thanks, same here, instead of opening a book a came on youtube. i find this more interesting than books
@ashapp884211 жыл бұрын
amazing. clear and straight forward
@Whatsjonosaying16 жыл бұрын
because of perfect knowledge a firm cannot sustain abnormal profit since a firm could just implement what ever advantage the firm has to their own firm.
@cri8tor15 жыл бұрын
Snap! I just left a comment asking you to post a vid about this subject and here it is. Make that another "A" for me next week. Thank you so much again.
@stevenkirby278310 жыл бұрын
this video is absolutely incredible. far better explanation than any tutor her win the UK! please upload some more pajLAD
@tehcrazysoccergirl11 жыл бұрын
Absolutely love your content.
@vee96813 жыл бұрын
You are a legend! Thank you so much.
@lordfarquadonaquad22777 жыл бұрын
Slob on my knob like corn on the cob
@sproggdaddy15 жыл бұрын
you're awesome... :) great teacher/lecturer
@ridwaanulhoque83067 жыл бұрын
In the name of the father the son and the holt spirit I big up that potent nose of yours and your knowledge. Keep it real my brother from the white supremacist mother 😤😤😤💯💯💯🅱🅱🅱❤️❤️❤️
@hwt200914 жыл бұрын
what would be useful is a video on the Treasury intragovernmental debt to explain its components and how it is put together
@gazakhstan14 жыл бұрын
thank you very much, that clarifys it for me! very good luck to you aswell mate :)
@wrules13 жыл бұрын
You failed to mention barriers to e xit which is obviously linked into barriers to entry. Thanks for these videoes, everytime a few days before my exams i always go through some of your videos.
@Popofkala13 жыл бұрын
thank you, well understood. could you please answer this question for me Consider a world with saving and investment. What will be the economic consequences of an improvement in the investment technology.
@annie8nicole12 жыл бұрын
i just love your videos they are so helpful thank u so much :))
@zz8713 жыл бұрын
Great explanation! Thank You very much!! Will You add some more lessons?
@E3tiger15 жыл бұрын
Thanks you might just help me get an A in my exam on monday!
@mmmelx11 жыл бұрын
You make revision much less daunting! Thank you!
@benmahon49649 жыл бұрын
love your work
@Tony00088814 жыл бұрын
Thank you so much for this video, great learning/revision material.
@waveboi9314 жыл бұрын
YOU ARE THE MAN!
@TheSimplylk13 жыл бұрын
thanks for the vedio . Would you kind be able to explan the short run industry supply curve?
@reenz123114 жыл бұрын
ive learnt so much from you thanks alot :)
@74dorset12 жыл бұрын
Is the reason the MC curve swoops down then up because of economies of scale? Anyone?
@Gee0695SCFC11 жыл бұрын
Cheers Paj
@teaQ713 жыл бұрын
do we consider average variable cost (AVC) or average total cost (ATC) in short-run?
@dankgamer59493 ай бұрын
👏👏
@kylezpottzrap14 жыл бұрын
i think i get this but i dont know what the mc mc ar lines all stand for???
@tamskisker12 жыл бұрын
oh my god you are awesome thank you!
@EatLotsOfCurry13 жыл бұрын
If in the long-run, firms are just breaking even, why even stay in business?
@madclown1615 жыл бұрын
abnormal profits = supernormal profits? someone please help me clear up this terminology!! thanks!
@gazakhstan14 жыл бұрын
Hello, i have a Unit 3 Edexcel Economics exam a week today, in fact this time next week it will be 15 minutes away :A But, why is it only in the short run that abnormal profits can be made in PC? i assume it is the low entry barriers??
@lilman61313 жыл бұрын
saved me from my micro exam!
@jaciecutie9411 жыл бұрын
You rock.
@Mediafrenzzy11 жыл бұрын
Mate I wish you were my teacher!
@shuangyang6616 жыл бұрын
i totally suck at micro econs. and i have an exam ina week's time.... do i still have enough time to save myself?
@jamaicaboy5449 жыл бұрын
So what if supply falls. im assuming just the exact opposite ?
@74dorset12 жыл бұрын
Thanks.
@Poseidon14316 жыл бұрын
so basically, due to 'no barriers' firms fight all the supernormal profit off? Leaving no supernormal profit to be made in the long run.. yes??
@NumbNuts9311 жыл бұрын
2:49 perfect line! how does he do that? My graphs always look really bad
@H20splashX12 жыл бұрын
no, it's because of the law of diminishing returns!
@Heavymetalisforlife12 жыл бұрын
where do you teach?
@WorthlessWinner11 жыл бұрын
Firms can enter or exit the industry in the short run but cannot in the long run.
@naveen1987may14 жыл бұрын
sir, i am sorry to say that but you must see the video of "Apeconreviewer". you can search this video by the name of -Microeconomics of perfect competition Part 1
@MalikBN312 жыл бұрын
No, thankyou very much!
@TheSola969 жыл бұрын
very helpful, thank you
@H20splashX12 жыл бұрын
IB economics? Paper 2 question 1?
@dannydenail12 жыл бұрын
You are good!!! My tutor is horrible compared to you.
@hduoawbdo22113 жыл бұрын
Phil Holden for president :D
@rkhs9015 жыл бұрын
when you say, individual firms have decreased Q, but the overall industry have increased Q, its not hard to understand as although there is decreased Q, there are more firms in the overall industry therefore increase overall supply (see 5.13 if you dnt know what im talkin about lol)
@cindi87978 жыл бұрын
The demand curve-increase and decrease- what?
@asasin19988 жыл бұрын
+CINDI If the firm is making super normal profits, demand for the firms good will decrease, this is because the supply of firms in the market as a whole increases (since there no barriers to entry, new firms enter the market with ease)..........On the contrary if the firm is making losses, demand will increase, as firms exit the market.
@cindi87978 жыл бұрын
The Perfect Competition market is sort of confusing a little. I would probably choose the Oligopoly market.
@StreetDancer1717 жыл бұрын
But...but..but the video is about perfect competition? Not an oligopoly?
@TheChelseaFan1199 жыл бұрын
so helpful!!
@Fonseca42910 жыл бұрын
What if a firm lowers her price? At request of a consumer?
@jackwebster471410 жыл бұрын
They would make a loss, they're already selling at the lowest price they can at the bottom of the AC curve
@Fonseca42910 жыл бұрын
Jack Webster Thanks.
@GIOGS15 жыл бұрын
MC and AC curves A2 ?!
@liverpoool4lyf13 жыл бұрын
I like the potato example ; )
@74dorset12 жыл бұрын
No, EF110 DCU.
@pajholden14 жыл бұрын
@Charlieboy4444 Thanks Charlie - say hello to your teacher for me.
@anubhav199711 жыл бұрын
practise
@Gghhhkkklll11 жыл бұрын
Badman
@Whatsjonosaying16 жыл бұрын
A2.........
@adijo12313 жыл бұрын
@abdullah7200 Perhaps you should learn that it is 'economics' first. Just kidding xD. Great videos Sir! I study economics without a teacher or a university too xD
@dara1rock13 жыл бұрын
8 people don't do economics
@ThatCynicalBrit12 жыл бұрын
A greek god
@lordfarquadonaquad22777 жыл бұрын
Paj daddy
@lindsay_10 жыл бұрын
i thought you were british
@nishu23gupta13 жыл бұрын
@TheSimplylk u cant spell. its 'video' not 'vedio' haha
@nustada10 жыл бұрын
I wish Obamacare supporters were forced to watch this.
@1mstr8todapoint9 жыл бұрын
*Perfect* competition.
@zz8713 жыл бұрын
Great explanation! Thank You very much!! Will You add more lessons?