It’s always my instinct to shift AR inwards, but you can more easily shift AC upwards, simulating the same change with less effort.

hi! great video, but had a big question: if, in the long run, only normal profits are being made, how can P>MC? This suggests that firms are actually making a marginal profit where AR>AC, but this can't be true if AR=AC and normal profits are being made. Additionally, if P>MC, this would give producers an incentive to sell more units since they'd be adding to their profits, but how would this matter at all if economic profits are zero in the end? Been puzzling over this for a while, your help would be greatly appreciated!! :))