Perfect Competition Short Run (1 of 2)- Old Version

Mr. Clifford introduces perfect competition, a market structure where firms produce identical products and are price takers. He explains the characteristics of perfect competition, such as many small firms and identical products. The video covers how firms in perfect competition have horizontal demand curves and are price takers. It also explains profit maximization, where firms produce where marginal revenue equals marginal cost. The video concludes with a demonstration of calculating profit using graphs and emphasizes the importance of understanding these concepts for exams.

What is the profit maximizing rule for firms in microeconomics?

How is total profit calculated in a perfectly competitive market?