Long-run economic profit for perfectly competitive firms | Microeconomics | Khan Academy

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Published 2019-03-12

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A firm in a perfectly competitive market might be able to earn economic profit in the short run, but not in the long run. Learn about the process that brings a firm to normal economic profits in this video.

AP(R) Microeconomics on Khan Academy: Microeconomics is the study of individual decisionmakers in an economy, such as people, households, and firms. Learn how markets work, how incentives drive decisionmaking, and how market structure influences market outcomes. We hit the traditional topics from an AP Microeconomics course, including basic economic concepts, markets, production and costs, profit maximization perfect competition, imperfectly competitive market structures, game theory, factor markets, and income inequality.

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All Comments (21)

@92Julesrules 3 years ago

I am from Germany and there is almost no really useful video about that topic in german. But this one is so simple and so easy to understand. I am impressed and thankful for being able to understand another language. Great video, thanks.
@Dnkpy 3 years ago

Thank you Sal for educating us. Keep up the good work!
@DanTheStripe 4 years ago

Incredible video. I always knew that economic profit in a perfectly competitive market went to zero in the long run but never knew why. This explains it bang on. Thank you!
@aasthasingh3711 3 years ago

No matter wherever i go.... This is the only channel where i finally understand everything.
@wrjazziel 3 years ago

Thanks, really helpful!
@michelleg2901 3 years ago

wow. beautiful lecture. I don't know how to thank you..
@Mylanyoutubechannel 4 years ago

lol never understood this until this video. Thank you very Much.
@nathaliyaminukshi8630 3 years ago

thank you for clear explaination
@alannac.7392 4 years ago

Thank you!
@_Infocars 2 years ago

Nicely explained 👍
@user-xp4ko2eg8q 1 month ago

Bro, thanks so much, you use a six minutes video make me understand a theory that uses 7 pages ppt and 30 minutes class time from my teacher. I'm already think about should I join the following classes or just sitting in library and self study.
@haasnainhaider6229 5 months ago

Thank you so much. You are life saver
@user-db7qs5sp8s 4 years ago

Thank you very much
@sonamjyrwa8047 2 years ago

awesome expalination
@lizzyberg1082 4 years ago

best video!
@revivingpositive6111 2 years ago

Thanks
@victoriaschmidt677 3 years ago

Love u so much
@princekangwa3232 3 years ago

i wish you were my professor not someone i know at the university of zambia
@woddle30 5 years ago

Hi 💗
@aster3080 1 year ago

Why did u set the equilibrium points of the new supply curves with the old demand curve. Eq points are set with a new supply and demand curve