Well may be some one can explain me.Why on the long run nobody will exit the market? I understand in long run there is no profit.So no one want to enter...but I would exit if there is no profit.
Hi, the reason is that zero economic profits, does mean that the income is covering OPPORTUNITY COSTS' - this is the way economists look at costs. So, the person who owns the business, say, is earning an income at least as great as any other alternative they might be employed in. Thus zero ECONOMIC profit, means the company stays around. Make sense?
@econsteve12 Thanks ecosteve for your quick answer.If I well undestand then, ECONOMIC Profit=0 means a company reached the Break Even.Thus no profit is generated but also no Loss.So since generally company are there to make profit,at least,if I where the owner of such a company I would not be happy to just cover my cost without generating money.(So personally I would start thinking going out).Again Thanks for you explanation and video.They are great and I'm sure you helped a lot of students.
Thank you! Thank you! Thank you! I have my final tomorrow and I was worried, because they tables never made much sense reading them in the book. I don't know why I didn't come out here sooner. I appreciate all your blackboards!
I have a preoccupation. When the firm are entered into the market, Is the production into the market decrease? The price is law, which will want to continue to produce the same amount, if this will decrease their revenu and then will decrease their profit. In another way the variable cost will decrease, which will make the total cost shift down, and then the tendance in the market will still be the same. Also in which way demand can influence the market?
hey econsteve... longrun supply curves are almost horizontal... (or perfectly elastic)...
You are drawing in my point of view your long rung supply and demand curv a bit confusing. But rest and other videos are realy helpful! Thanks a lot...
i think this is really perfect... usually it takes me one day to read a fricking one chapter.and u r covering everything in just 30 minutes not just that u r making it so interesting. and today i was lucky i searched and i am so glad that i find u... ur speach is perfect for mee... u r so goood.. i wish if u were my prof....
you are my real teacher on Microeconomics... thank you soo muchhh
nolla454 1 month ago
thank you based god
fackhead 4 months ago
Well may be some one can explain me.Why on the long run nobody will exit the market? I understand in long run there is no profit.So no one want to enter...but I would exit if there is no profit.
cinqueottavi 6 months ago
@cinqueottavi
Hi, the reason is that zero economic profits, does mean that the income is covering OPPORTUNITY COSTS' - this is the way economists look at costs. So, the person who owns the business, say, is earning an income at least as great as any other alternative they might be employed in. Thus zero ECONOMIC profit, means the company stays around. Make sense?
econsteve12 6 months ago
@econsteve12 Thanks ecosteve for your quick answer.If I well undestand then, ECONOMIC Profit=0 means a company reached the Break Even.Thus no profit is generated but also no Loss.So since generally company are there to make profit,at least,if I where the owner of such a company I would not be happy to just cover my cost without generating money.(So personally I would start thinking going out).Again Thanks for you explanation and video.They are great and I'm sure you helped a lot of students.
cinqueottavi 6 months ago
Thank you! Thank you! Thank you! I have my final tomorrow and I was worried, because they tables never made much sense reading them in the book. I don't know why I didn't come out here sooner. I appreciate all your blackboards!
Wrckless 9 months ago
well articulated concepts. but get some new software. jesus christ
kevincmccollow 11 months ago
I have a preoccupation. When the firm are entered into the market, Is the production into the market decrease? The price is law, which will want to continue to produce the same amount, if this will decrease their revenu and then will decrease their profit. In another way the variable cost will decrease, which will make the total cost shift down, and then the tendance in the market will still be the same. Also in which way demand can influence the market?
leocharnel 1 year ago
Thanks sir:)
coldbloodisback 1 year ago
ommmggg everything just clicked finnallyy!
you're the best honestly, thank you SO MUCH
tmacgirl3 1 year ago
Your videos are tremendous help!
Thank you!
loverofbeats 2 years ago
hey econsteve... longrun supply curves are almost horizontal... (or perfectly elastic)...
You are drawing in my point of view your long rung supply and demand curv a bit confusing. But rest and other videos are realy helpful! Thanks a lot...
wood861207 2 years ago
Thanks .....you are great
ASURANKAPPA 2 years ago
i think this is really perfect... usually it takes me one day to read a fricking one chapter.and u r covering everything in just 30 minutes not just that u r making it so interesting. and today i was lucky i searched and i am so glad that i find u... ur speach is perfect for mee... u r so goood.. i wish if u were my prof....
thanksssss alotttttttt
Da3so8aa 2 years ago
7:38 did u mean price goes up?
fh1mahfanzai 2 years ago
Very nicely explained. Can be a lot more effective and understandable if you concentrate on your speech skills. Still, very nice work.
Razaaz 2 years ago