Micro 3.7 MR = MC Practice: Econ Concepts in 60 Seconds for Advanced Placement Microeconomics

[pirintablet1980]

Two years ago I returned to college, and for the last year and a half, I have referred to your videos to help me with my college Economics classes. I'm not sure if you put these out there for your own students, or if you intend them to be for everyone, but THANK YOU for putting them out there nonetheless. They have been a tremendous help to me. They have been so helpful, in fact, that I feel guilty that I'm not paying for a resource that has been so valuable to me. Thanks again!

[Icemonster8]

saving me so much with your videos thank you ! and i love the background track

[benlorenc]

so q represents quantity so if its pass 4 you dont produce anymore?

[FooRaw]

@benlorenc you will produce but not efficiently due to the fact that MR will be greater than MC.

[kochacola018]

DUDE I LOVE YOUR VIDEOS! I'm in the middle of AP Econ Micro this semester as a senior and next semester I'm taking AP Macro. You are such a good teacher!

[letetter]

if u rush u don't nobody to understand what you are really want to tell us. this for people that already know the course

[TheJq32]

this bonus round was sweet!

[amhere4truth]

short and easy way explanation...i like it

[MrHovanic]

ok really great vid. but what is MI??

[blacklord124]

why does MC go down and then up....?

[dtbjjrb]

Thank you sir! I always thought MR always had to equal MC, but then it hit me that as long as MR > MC, there's still a profit. I got confused on one of my assignments because I knew that the firm had to produce where MR = MC, but when I chose the output, AVC ALSO = MR and MC (I was stuck because I was taught that a firm had to produce where MR = MC AND was ABOVE AVC)! So thank you!

[Versulas]

So awesome XD

[kawaiisrs07]

I like his videos but I wish he didn't go so fast. Why does it have to be 'under so many seconds'

[titojwonnie]

Damn that was fast...and I understood everything. Coooooolllll!

[bamboneski]

@titojwonnie right me too ...cool as fuck

[VocallySkiLLeD]

THIS WAS AN AWESOME VIDEO!!!!!! HELPED ME TO UNDERSTAND WATCHING IT THE FIRST GO ROUND!!!

[niallsp]

sorry to rain on your parade but that was actually 80 seconds :-(

you started the stopwatch at 0:28 and said done at 1:48 :P

[doriangrae]

i really like your videos, they're very helpful, but in my humble opinion the background music is distracting..

[SteroidsR4Heroes]

You just brought my hw grade from a B to an A. Thanks haha

[swimchick4lif3]

This saved my life!

[MrCountCoCoaFang]

What if MR goes back to being higher than MC after, though?

[ACDCLeadership]

The theory suggests that MR in perfect competition is constant and MC will continue to rise because the law of diminishing marginal returns. The point is, there will only be one place where they meet.

[qlawson100]

You are WONDERFUL! My instructor needs to take teaching lessons from you!

[fevah1]

u saved my life!

[gstwenty]

Thank God for you!

[TheKrakatoa1]

I subscribed

i wish u were my teacher :|

[nsand91]

Is this the case where the market is perfectly competitive ?

[Mzqueenb1028]

Hello, I have a proplem in my class that askes me how many cases should be produced inorder to mazimize profit. Case is $42.00 and MC=.006Q. But we dont have the total cost to help calulate the Marginal cost. what to do how do i calulate the MC, to find out at what Q to maximize the profit at. HELP...Queen, hope to here from u soon.

[kmsubbu]

Case is $42 -- if you sell one more unit of case, you get 42 bucks. that is your MR.

You are given with MC directly. MC = 0.006Q where Q is the number of cases produced/sold.

MR = MC --> 42 = 0.006Q

Solving for Q, we get Q = 42/0.006 = 7000. That means, for maximum profit, you will produce and sell 7000 units.

Note that you are given with MC -- that means, you do NOT need TC...

[sobermall]

Mr. Clifford please let me clear that Profit is Maximum at Q= 4, MC = 15 and MR = 20

TR = 80 and TR = 60 (Profit = $20). A firm is in equilibrium (gets maximum profit) when MC = MR but the point you have discussed there MC = 15 and MR =20 which are not equal. Please explain.

[ACDCLeadership]

Yes. The profit maximinzing rule is "produce where MR=MC" but what that really means is "produce as long as MR is greater than MC." On a graph you always label the quantity at MR=MC. When asked to calculate, sometimes there is a situation where MR doesn't exactly equal MC so you should produce as long as MR is greater. This will maximize your profit. I hope this makes sense :)

[sobermall]

@ACDCLeadership But Sir the question is raised because there shall be the difference in the Diagaramatical presentation and schedule. I send you the schedule I have then please explain it.

[cinqueottavi]

@ACDCLeadership Yes,make sense.The condition MR=MC is meet wen the derivative of the Productivity Curve is equal to 0 and in you example is at q=4

[corea01]

i'm pretty much stuck. i've started this online AP Micro class back in november but this class is so hard because I'm basically trying to self learn it. do you have any suggestions for me?

[lonewarrior601]

@corea01 - check out Sparknote's micro sparkcharts and Cliffnotes has some good descriptions - also, check out gewalker72 - I've been using both of these video series, and she breaks it down really nicely. Hope that helps! :)

[nickhughes1988]

thanks heaps :)