Profit Maximization in Perfect Competition | How Firms Earn and Lose Profit in Microeconomics скачать в хорошем качестве

Profit Maximization in Perfect Competition | How Firms Earn and Lose Profit in Microeconomics

Want study resources for this lesson about Profit Maximization? Click here: 🔹 Flashcard set → https://bit.ly/3MMPEV8 🔹 Practice test → https://bit.ly/4a1EgOY 🔹 Study guide → https://bit.ly/3Ye32Em In perfectly competitive markets, long-run economic profit falls to zero, even though firms can earn profit in the short run. How can both be true? This video breaks it down step-by-step. You’ll learn how firms decide how much to produce, why MR = MC is the profit-maximizing rule, how cost curves determine profit or loss, and why market entry eventually pushes price to the minimum of ATC. What we cover: The definition of profit: TR − TC, including opportunity costs Price-taking behavior and why P = MR in perfect competition The profit-maximizing rule: MR = MC How long-run entry drives price to minimum ATC Why long-run economic profit is zero or “normal profit” How firms can earn short-run profit when price rises above ATC The shutdown rule Whether you’re studying for microeconomics or reviewing cost-curve logic, this video gives you the clean, intuitive framework instructors expect you to know. #Microeconomics #PerfectCompetition #ProfitMaximization