Oct 12, 2010
A2 Microeconomics: Perfect Competition
In this video I explain what is a perfectly competitive market, the four key characteristics of a perfectly competitive market, explain why D=AR=MR=P and how firms set price. In my next video I will explain how firms can make profits and losses in the short-run and what does a firm look like in the long-run.
In this video I explain how firms can make profits and losses in the short-run and what does a firm look like in the long-run. I explain the profit maximisation, productive and allocative efficient in the long run. In the first part I explain what is a perfectly competitive market, the four key characteristics of a perfectly competitive market, explain why D=AR=MR=P and how firms set price.
#perfect competition#komilla chadha#short-run#long-run#equilibrium#loss#profit maximisation#abnormal profits#normal profit#productive efficiency#allocative efficiency#price takes#marker price#barriers to entry and exit#economics#edexcel#a level#characteristics#homogeneous#perfect knowledge#d=p=ar=mr#price setting