List of Diagrams

There are lots of diagrams to be familar with in Economics. This section has a collection of video tutorials taking you through the drawing of the diagrams. Some assume that you understand key topics so make sure you read the description and watch them in the right order if you are unsure. There is a list of all the diagrams below you can click on or you can scroll down to see them all.

Monday, 02 December 2013 17:18

Perfect Competition and Supernormal Profit

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Like any firm, perfectly competitive firms aim to profit maximise. Unlike other firms, the maximum amount of supernormal profit a perfectly competitive firm can make in the long run is zero. Supernormal or abnormal profit is any profit other than the payment you need to make to the entrepreneur for his services. In the short run it is possible to generate this sort of profit but in the long run the lack of barriers to entry mean that other firms will enter the market and compete away the profit.

This tutorial will talk you though drawing the diagram. Before you look at it I suggest that you make sure you are happy with the basic perfect competition diagram.  

Unfortunately at the moment the tutorials are only available using flash so they may not work on mobile devices.

 

Read 2161 times Last modified on Tuesday, 05 May 2015 15:53
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