Perfect Competition (Part 4b): Increasing Cost Industry

This video assumes the firm operates in a “constant-cost” industry. This means that input costs increase as new firms enter the industry and begin to demand more resources to produce this good. Therefore, when going through the long-run adjustment (when making short-run profits), ATC will shift upward and new market supply curve would not shift as far right. This video is made for 1st year college students or AP/IB Economics students. It focuses on foundational economic concepts.

• #education
• #ap_economics
• #ap_micro
• #microeconomics
• #economics
• #supply_and_demand
• #market_equilibrium
• #perfect_competition
• #increasing_cost_industry
• #short_run_profits
• #long_run_profits