congrats on 50k

peng trim

The 14 dislikes are students who forgot to write cetirus paribus

@freddy5713

2 жыл бұрын

cant see them dislikes anymore ;-;

@_tooli

8 ай бұрын

u can with browser extentions@@freddy5713

thanks vikk

Thank you so much, I actually kind of understand this now

Congrats on 100k

you are the hero to my grades

Ive not got this for a year before this video THANK YOU

Thank you for your help!

Thank You So Much.

love you dal ur the best

Not sure if this video is meant to be out yet but 3 vids in 1 day, I feel spoilt.Also I'm in year 12 looking to do economics at uni and wondered if you had any tips or advice, cheers :)

@samueljwilson418

6 жыл бұрын

Also congrats on 50k

@mangow8257

3 жыл бұрын

Hey bro how’s life going

@Patrick-cq7ck

2 жыл бұрын

@@mangow8257 good thanks

@Ahmed-ln1fv

2 жыл бұрын

@@Patrick-cq7ck did you end up doing econ at uni?

@antisocialbarbie1587

Жыл бұрын

Are you done with uni?

exam tom OMFG

Thanks.

❤

Does it mean that the assumption behind the allocative efficiency model is perfect competition market?

@billyfox6368

2 жыл бұрын

Yes, that's the problem with non-competitive markets: it's market failure because they're inefficient.

@jamiek8603

2 жыл бұрын

@@billyfox6368 is this still applicable to monopolies/oligopolies then if i reverse the arguments?

@billyfox6368

2 жыл бұрын

@@jamiek8603 Yes, monopolies and collusive oligopolies - non-competitive markets - are examples of market failure because they tend to be allocatively inefficient.

@jamiek8603

2 жыл бұрын

@@billyfox6368 thanks

my teacher taught me although we say marginal private "cost" it still refers to a firms positive gain aswell, is this true???? someone please help.

@billyfox6368

2 жыл бұрын

Well, in a perfectly competitive market, there are no supernormal profits, so marginal cost equals marginal revenue. Marginal revenue is the same as price (as that's basically what price is i.e. how much the consumer pays for the good i.e. how much the producer receives for each good sold). Consequently, yes, the y-axis is all price, costs and welfare (which should equal price for the consumer in order for it to be worth the opportunity cost).

Am I right to say allocative efficiency is where welfare is maximised, as price is as low as possible without the firm making a loss? Allocative efficiency=sales max=welfare max=(AR=MC)?

@rushdashaikh5380

4 жыл бұрын

that is correct marginal cost will need to be equal to price for allocative efficiency

@subrotochatterjee5788

3 жыл бұрын

Price = Average revenue (AR), which is represented by the demand curve. Also, the supply curve represents the marginal cost curve. At equilibrium, MR = MC = AR.

I am struggling to understand why net social benefit increases the closer you get to Q*, since surely NET means SB - SC (which is why it isn't maximised when quantities past Q* are produced), and therefore net social benefit would be greatest at 0,0 since SB is at its highest and SC is at its lowest? Thanks for clearing this up!

@justintyme7787

5 жыл бұрын

Actually I understand now. I was looking at it as if it were a single point at equilibrium, in which case SB = SC so Net SB = 0. However I should have seen it as a continuous line until the point of equilibrium, in which case the Net SB still increases, just with a diminishing rate until the point of equilibrium (past the point of equilibrium the Net SB would start decreasing).

@_DigitalData

5 жыл бұрын

@@justintyme7787 This helped me a lot. Thank you for the explanation.

thanksssssssss

i love u

Cant we say (-social cost= social benefit).?

how does the law of diminishing marginal returns relate to mpc?

@maratmammadov6672

3 жыл бұрын

idk

@rxb177

3 жыл бұрын

@@maratmammadov6672 so what’s the point in replying then😎

@maratmammadov6672

3 жыл бұрын

@@rxb177 point is to reply to your answer because all questions have their own answers in this case my point is not to give correct answers t u my point is to give answers for your question

@kaibaing4288

2 жыл бұрын

Marginal Private cost represent marginal cost of production And as we know law of diminishing returns,states how mc initially decreases due to specialization then stagnates and then increases tremendously due to congestion.

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You make an assumption early on that MPC=MSC in a free market (no external costs), that you don't include in the list of assumptions at the end.

@chang873

4 жыл бұрын

But if I understood correctly, the assumptions outlined at the end all support the statement that MPC=MSC and MPB=MSB. If one of those factors changes, than MPC and MSC wouldn't be equal leading to market failure. He mentions MPC=MSC as a statement based on those assumptions, I think it's all linked together.

I don't understand why you're saying past Q* cost is higher then benefit. What do you mean by this?

@robertvlcek9870

Жыл бұрын

Because any point past Q* on the Demand curve (the MSB) will be at a lower price than any point on the supply (MSC) curve. That means that producing a product past Q* will bring only the relevant benefit (expressed by price which will now be getting lower and lower) which will be lower than the price of the MSC (which start getting bigger and bigger past Q*). This means the cost to society will be bigger than the benefit to society which is now getting lower and lower. Imagine building one school in a city of 1 million people. The MSB is going to be massive for the society but the cost is going to be relatively low considering the number of people in the city. So you start building more schools until you get to point Q*. If you go past that by building a school in every street, this will now cause the social cost to be much higher than the benefit. We don't need so many schools.

Then does P=MC mean that P is MSB and MC is MSC?

@loveridgelads

5 жыл бұрын

well, Demand = MSB (perfect competition), Demand = AR, AR = Price, so yes in a sense, but not directly

@oneinabillion654

5 жыл бұрын

@@loveridgelads That's why I didn't understand the reason for calling things demand if they don't fully represent demand LOL

This guy wearing suncream when he looks at the camera