Lecture Overview:

Part 1: Profit and Loss: Accounting and Economic Profits

Chapter 9 is a long chapter so again, I have broken it up into two parts. The first part will be on Accounting and Economic Profits. So, start off by listening to the sub-topic "Accounting and Economic Profits" in the recorded lecture below. It is at minute 8:04. It ends at 11:37. Also read my Accounting and Economic Profit document summary that is in the module.

At the micro level, what determines whether a person will quit his job and take another or will choose one job over another if he is offered two jobs? The answer is economic profits.

At the macro level, what determines the movement and use of the input resources, land, labor, capital, and entrepreneurship in an economy? It is economic profits.

But economic profits are not the same as accounting profits! If you are confused, do not worry. The lecture will make these two different types of profits clear to you.

Then watch my second video in this module, where I demonstrate how to calculate accounting and economic profits using word problems.

Part 2: Perfect Competition

In this chapter, you will also learn the importance of economic competition. Competition keeps entrepreneurs honest and it makes our economy work efficiently. Again, you will see what I am talking about once you finish the video lecture. So enjoy!

Be sure to get out your pencil and paper and take notes and do what I do in the lecture when I do calculations to determine the costs for a perfectly competitive firm. You will learn the material faster and deeper because you will be learning by doing. It is a much better way of learning than just watching and listening to me. The brain becomes more active when you take notes and do the calculations.

The material in the video is a wonderful preparation for your chapter 9 practice quiz, your chapter 9 testing quiz, and for your final exam. Do the practice quiz as many times as you can and take your time with the quiz. Be sure to read my mini-lecture feedback for the questions in the practice quiz.

I also suggest you have your textbook near you so that you can relate the material in the textbook to my video lecture.

The material in this video lecture does go beyond the material in the textbook. You will notice the difference towards the end of the lecture.

Below is a menu that lists the topics and the time they are discussed on the video. Use your horizontal lever while watching the video to move to the topic you wish to review.

Link to PowerPoint Presentation Used in this Video Lecture:

Chapter9.2020.pptx

Link to Video Lecture:

Watch My Profit, loss and Perfect Competition Video Lecture

Video Lecture Recording Menu:

This video is about 30 minutes long.

Below is a menu that lists the topics and the time they are discussed on the video. Use your horizontal lever while watching the video to move to the topic you wish to review.

Time: Topic:

00:23 Definition of Perfect Competition

04:40 The Perfect Competitor's Demand Curve and the Industry Demand Curve

07:21 Graphing Demand and Marginal Revenue for the Firm

08:04 Accounting and Economic Profits (Chapter 9: Part 1)

11:37 Profit Maximization: Marginal Revenue = Marginal Cost Approach using a Graph

12:45 Profit Maximization and Loss Minimization using a Schedule

13:47 Profit Maximization and Loss Minimization using a Graph

16:28 Short-Run Loss Minimization Case Using a Graph

18:29 Efficiency and Profit Maximization Using a Graph in the Short Run

19:34 Economic Profits or Losses in the Short Run

21:02 Going from Taking an Economic Loss in the Short Run To Breaking Even in the Long Run

24:56 Going from Making an Economic Profit in the Short Run to Breaking Even in the Long Run

27:06 The Perfect Competitor in the Long Run

27:25 Summary: Perfect Competition

28:41 Shutdown Case

29:36 The Shutdown and Breakeven Points