Скачать или смотреть Monopoly Long Run Profit & Equilibrium Explained | AP, IB & A-Level Economics Visual Guide

In this video, we move beyond the short run to explore the Monopoly Long Run Equilibrium — showing how a monopolist adjusts plant size and cost structure to achieve long-run profit maximization.

Through detailed Mathematica-based visualizations, we illustrate how:

The Long Run Average Cost (LRAC) curve acts as the envelope of multiple Short Run Average Cost (SRAC) curves.

The monopolist’s short run equilibrium transitions to a more efficient long run plant size.

The Long Run Marginal Cost (LRMC) equals Marginal Revenue (MR) at the new equilibrium.

Profit areas expand from short run to long run.

Finally, we compare the monopoly’s long run outcome with perfect competition, showing welfare differences and efficiency loss.

This video continues from the previous lesson, “Monopoly Short Run Equilibrium”, and completes the story by explaining the long run adjustment and welfare comparison — ideal for AP Microeconomics, IB Economics, A-level Economics, and undergraduate microeconomics learners.

🎯 Key Takeaway:
In the long run, the monopolist can adjust plant size to lower average cost — but still restricts output compared to perfect competition, leading to lower welfare.

#Monopoly #MonopolyEquilibrium #LongRunEquilibrium #APMicroeconomics #IBEconomics #ALevelEconomics #Microeconomics #MonopolyProfit #PerfectCompetition #EconomicWelfare #EduByAmjad #EconomicsExplained #CostCurves #LongRunCost #EconomicVisualization #MathematicaVisualization #MarketStructure #ProfitMaximization #Econometrics

⏱️ Updated Chapter Breakdown (YouTube Chapters)

00:00 – Short Run vs Long Run: Fixed and Variable Inputs
00:09 – Adjusting Plant Size and Long Run Flexibility
00:14 – Long Run Average Cost as the Envelope Curve
00:27 – Tangency Between Short Run and Long Run Cost Curves
00:48 – When Plant Size Becomes Inefficient
01:02 – Animation: LRAC and SRAC Relationship
01:20 – Reading Tangency Points and Cost Levels
01:27 – Functional Forms of Cost and Revenue Curves
01:53 – Demand and Marginal Revenue in Monopoly
02:09 – Monopoly Short Run Equilibrium (Recap)
03:00 – Calculating Short Run Monopoly Profit
04:07 – Transition to Long Run: New Plant and Profit Maximization
04:56 – Monopoly Long Run Equilibrium (LRMC = MR)
05:15 – Long Run Profit Calculation and Visualization
05:47 – Comparison: Short Run vs Long Run Monopoly
05:59 – Perfect Competition: Welfare Benchmark
06:17 – Efficiency Gains and Welfare Comparison
06:55 – Summary: Monopoly Long Run Equilibrium and Welfare Outcomes