what are the three conditions for a market to be perfectly competitive? This is a topic that many people are looking for. star-trek-voyager.net is a channel providing useful information about learning, life, digital marketing and online courses …. it will help you have an overview and solid multi-faceted knowledge . Today, star-trek-voyager.net would like to introduce to you Perfect Competition in the Long-Run- Micro Topic 3.7 (2 of 2) . Following along are instructions in the video below:
“Doing this mr. Clifford ac. Dc econ keegan kannamma concepts in 60 seconds in another another video. We explained this graph you showed the market and we showed the individual we show the idea problem.
We actually have you calculate profit total cost and total revenue. The next step is what happens in the long run the long leg is when it has time for firms to enter leaving a perfect competition is very easy for firms to enter right. So..
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This is an avocado producer. So it s not that hard for other firms to start producing avocados. Right before maybe they had a few other countries and they just want water you there s some producers that were watering because it was much money in it but now right you can see there s but some profit in it or something and the now something is going to change you re going to see that kurt like now. The profit is right here.
Current profit being made the question what happens the long run okay well first step is firms are going to enter. And the reason. Why firms enter again is to make profit right a farm like i m not going to produce peaches..
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I m not going to produce something else now. I m gonna start producing avocados when that happen. The supply curve because more firms enter. It s going to shift to the right supply shifts to the right each just like that and that drive down.
The market price. Let s call that market price seven market prices. Seven good not going to increase the corners well this one can t keep charging 10 because the market price had fallen down to seven..
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So you can see they have to take this new price which you re going to put it right here. And label is d take a look just right. There s a concept that they re not going to produce ten units. You more as you can see because now the point where mr.
At mc is different they re going to do is now eater. So we re gonna call that eight all right so far so good good that went down and now if you can see the our long run equilibrium. How do i know well let s get rid of that with a banker..
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Things gone get a little quantity just by looking at it. Now you think oh i see why right there s no economic profit. There s no reason for firms to enter there s no reason for firms to leave firms. Gained just right there no economic profit being made done til next time ” .
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My 60 second explanation of perfect competition in the long run. It s an old video, but it s still good. To watch NEW practice videos please check out the Ultimate Review Packet. It is FREE to start. https://www.acdcecon.com/review-packet
tags:
long, equilibrium, unit, review, perfect, perfectly, competition, short, run, market, industry, firm, AP, micro, econ, microeconomics, economics
