ECON1: Profits, Prices, and Costs Under Competition
Introduction to basic Microeconomic equations including: Price Elasticity of Demand, Marginal Revenue, Marginal Cost, Total Revenue, and Profit. Discusses when firms should enter and exit the market and why zero profits (normal profits) are important. Speaks upon the First Invisible-Hand Property by Adam Smith and how Perfectly Competitive Markets work. Includes multiple graphs depicting Marginal Revenue and Marginal Cost, Elasticity, and Perfectly Competitive Markets. Also explain Average Cost and profit maximization.