7. Competition I

MIT 14.01 Principles of Microeconomics, Fall 2018
Instructor: Prof. Jonathan Gruber

This lecture finishes the discussion about costs from Lecture 6, and then the instructor explains perfect competition and short-run profit maximization.

License: Creative Commons BY-NC-SA

[skaslam]

These lectures are far better than some Netflix series

[spartancocoman]

Th professor is absolutely brilliant, It's so much better than my microeconomics class

[unrulyastronomer]

This is a great series! Prof Gruber is hands down my favorite online economics teacher.

I noticed an error (at 32:40) that viewers of this video might benefit from seeing corrected:

Total profits at the profit-maximizing point (the point where q=3) is 35, not 45.

Here's the math: P=R-C= (30q)-(10+5q^2) = not 45.

So the discrete answer (P=35) is the same as the continuous answer (P=35) that was calculated at 40:05.

[debarpanmusib]

Great course content, Thanks Professor Gruber, and MIT for making this possible!

[MajinXarris]

4:27 this one's straight out of theory of poker. The fact that you bet on the flop doesn't mean that you will have to pay to see a turn card if the odds aren't in your favour or someone else is betting heavy. You gotta let of your hand.

[itz_ilyas]

I never attend any regular class of economics but this lecture series helped me a lot to learn about how it works. . Thanks MIT and Professor Jonathan Gruber.

[jonny_gage]

This is a good lecture and I'm going to watch it in VR!

[uditabhattacharya]

28:08 till end as profits per unit needed for visualization DO LECTURE QUESTIONS FIRST

[federicoadilardi]

I still have some doubts about fixed vs sunk costs. How would you answer to this question?: fixed costs are: a) sunk in the short run, but not in the long run b)are sometimes sunk c) are avoidable d) are always sunk

[MichaelMok-ykdc]

In regard to selling your house, actually borrowing constrain also won't matter. Even with a borrowing constrain, one should still not consider the sunk cost - how many you paid for the house.

[deilacarolinacastillo]

Min 24.35 The best teacher I could have. Never remove these courses

[harshaagarwal]

As far as I understood the math for calculating the profit at q=3, the cost function 5*3^2+10=55-90=35. I think that 45 is anyways is not the profit even if consider it discrete.

[iris_]

22:45 love that. you speak up my mind prof Gruber🤣

[krissp]

14:00 yay for the last session of this course!

[ryanhayes]

@6:10
If Steve Perry can hit that B above middle C in "Don't Stop Believin, " you're going.

[MinSeokSong-fd]

I was really confused why dS^0/dp >0, and I concluded that it's because the number of participants will increase as price goes up. I think it wasn't clarified enough in the lecture.... please correct me if I'm wrong.

[pran-ker]

What hpns if there are multiple opportunity costs?
- Do we take average or
- Highest opportunity cost, etc

[yvettecrystal]

The formula is a bit confusing: there are too many shorts and I can't recognize them immediately, so I have to ask chatGPT every time I come across a confusing letter.😢

[MrBargdill]

WOAH! so can you write off opportunity costs on your taxes or are you stuck with just messing around with accounting profits?

[zafrulsiddique]

How can a 45 degree demand curve have a constant elasticity of -1? He is confusing slope with elasticity.