Minimization of Total Industry Costs of Production
- Title:
- Minimization of Total Industry Costs of Production
- Description:
-
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This section connects several ideas covered in previous videos about the price system and profit maximization. In this video, we begin to understand two basic functions of the Invisible Hand. In competitive markets, the market price (with the help of the Invisible Hand) balances production across firms so that total industry costs are minimized. Competitive markets also connect different industries. By balancing production, the Invisible Hand of the market ensures that the total value of production is maximized across different industries. We’ll use the example of minimizing total costs of corn production, and demonstrate our findings through several charts.
Microeconomics Course: http://mruniversity.com/courses/principles-economics-microeconomics
Ask a question about the video: http://mruniversity.com/courses/principles-economics-microeconomics/minimizing-industry-costs-production-invisible-hand#QandA
Next video: http://mruniversity.com/courses/principles-economics-microeconomics/creative-destruction-definition-elimination-principle
- Video Language:
- English
- Team:
Marginal Revolution University
- Project:
- Micro
- Duration:
- 09:06
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John Silva edited Portuguese, Brazilian subtitles for Minimization of Total Industry Costs of Production | |
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Smartthomas edited Chinese, Traditional subtitles for Minimization of Total Industry Costs of Production | |
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Smartthomas edited Chinese, Traditional subtitles for Minimization of Total Industry Costs of Production | |
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Smartthomas edited Chinese, Traditional subtitles for Minimization of Total Industry Costs of Production | |
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Smartthomas edited Chinese, Traditional subtitles for Minimization of Total Industry Costs of Production | |
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My Quỳnh edited Vietnamese subtitles for Minimization of Total Industry Costs of Production | |
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My Quỳnh edited Vietnamese subtitles for Minimization of Total Industry Costs of Production | |
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Thảo Nguyên Trần edited Vietnamese subtitles for Minimization of Total Industry Costs of Production |