Perfect Competition: Short-Run Losses & the Shut-Down Decision
Perfectly competitive firms can make losses in the short-run. The relationship between the price (i.e. the per-unit revenue) and the average variable costs (AVC) is of critical importance. A firm will not supply any of a good, even in the short-run, if the price is less than the average variable costs. If this is the case, it is better for a firm to shut-down (i.e. losses will be minimized). This video is made for 1st year college students or AP/IB Economics students. It focuses on foundational economic concepts.
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Perfect Competition (Part 4): Short-Run Profit to Long Run Breakeven
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Perfect Competition (Part 1): An Introduction
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The "Shut-down Rule" - When should a firm shut down in the face of economic losses?
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The Supply Curve is the Marginal Cost Curve
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Shutting down or exiting industry based on price | APⓇ Microeconomics | Khan Academy
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The Strange Math That Predicts (Almost) Anything
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How to Answer ANY Question (Even If You Don't Know The Answer!)
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MR=MC The Profit Maximization Rule
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Chapter 16: Monopolistic Competition
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Micro 3.6 The shut down rule!
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Maximizing Profit and the Shut Down Rule- Micro Topics 3.5 and 3.6
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Perfect Competition (Part 4b): Increasing Cost Industry
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Y2 15) Perfect Competition
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Demand, Marginal Revenue and Profit Maximization for a Perfect Competitor
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Intermediate Microeconomics: Perfect Competition
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Micro: Unit 1.6 -- Consumer Surplus, Producer Surplus, and Deadweight Loss
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The Big Short (2015): The Jenga Scene – Explaining the Financial Collapse
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Long-run economic profit for perfectly competitive firms | Microeconomics | Khan Academy
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PED: How Price Changes Impact Total Revenue
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