Last Minute Lecture

Competitive Firms and Market Supply — Price Takers, Profit Maximization, and Market Equilibrium Explained | Chapter 14 of Principles of Microeconomics How do perfectly competitive firms decide how much to produce and how does their collective behavior shape market supply? Chapter 14 of Principles of Microeconomics explains the economic logic that guides competitive firms in setting output, responding to prices, and reaching market equilibrium. This summary breaks down the decision-making process of price takers and shows how supply emerges from both firm-level and market-wide choices. 🎥 Watch the full chapter summary below and subscribe to Last Minute Lecture for more textbook breakdowns and academic study guides! Characteristics of a Competitive Market In a competitive market , there are many buyers and sellers offering identical products. No single firm has market power —all are price takers who must accept the prevailing market price. Firms compete on cos...

The Costs of Production — Marginal Cost, Economies of Scale, and Firm Decision-Making Explained | Chapter 13 of Principles of Microeconomics What drives a firm’s decisions about how much to produce, at what cost, and for what level of profit? Chapter 13 of Principles of Microeconomics explores the core concepts behind production costs, providing a foundation for understanding firm behavior, supply decisions, and pricing strategies in competitive markets. This summary will help you master key cost measures, distinguish between economic and accounting profit, and analyze how firms achieve efficiency—or fall short. 🎥 Watch the full chapter summary below and subscribe to Last Minute Lecture for more textbook breakdowns and academic study guides! Opportunity Cost and Types of Production Costs Every decision in production involves an opportunity cost —the value of the next best alternative forgone. Costs can be: Explicit Costs: Direct, out-of-pocket expense...