We will continue our discussion on the first form of market that is perfect competition. So, if you remember in the last session, we are discussing about this type of market form that is perfect competition and this is one type of extreme as compared to the monopoly. So, in the last class, we discussed about the different characteristic features of perfect competition and how it makes it a perfect competitive market structure. Then we talked about the demand and revenue of a firm competitive firm and demand and revenue for the industry. Then we talked about the profit maximizing condition that is two condition one is necessary condition and second one is sufficient condition. Then taking these two profit maximizing condition, we analyzed the short term equilibrium in different situation like supernormal profit, normal profit and supernormal losses and we talked about the like the subnormal profit what generally the firm gets when they are getting into the shutdown operation. We check the shutdown condition in which case generally the firm stops the production and get out of the market and when if you look at in a typical market, the manager has to take two decision either whether to produce or whether to shut down. So, we check the in that context we check the shutdown condition. So, in today's session, we will start our discussion with the supply market supply and firm supply analysis in the short term. Then we will discuss the long run profit maximization. Then we will talk about the long run supply analysis. Then we will see how what is the imposition of tax generally what is the effect of imposition of tax in the theory of typically in the perfect competitive market. Then we will see whether there is a relevance of this perfect competitive market structure in the real world. So, to start with the short run market supply, if you remember we just stop our discussion on the in the last session on the shutdown condition and what is the shutdown condition. If the price goes below the minimum of ABC, generally the firm shutdown the operation. So, that is the starting point to analyze the short run supply function in case of a perfect competitive market structure. The perfectly competitive firm produces above the minimum point of ABC because any level of output below the minimum point of ABC it brings there is no profit or no loss maybe it is not loss apart from profit it is not loss even they are not able to cover the variable cost also. And discontinues the production if price falls sort of minimum of ABC. So, from this shutdown condition there are two condition emerge one condition one if price is less than minimum of ABC then shutdown condition two if price is greater than or equal to minimum of ABC then choose any output that would maximize the profit. One is the first case is very clear if it is less than minimum of ABC then shutdown. Second one if it is greater than or equal to minimum ABC then the firm should go for production but there again he has to take a call or the manager has to take a call that what is the output level that would maximize the profit. And to get that level of output again the firm has to go to the profit maximizing condition taking both the first order and second order or with the so called necessary and sufficient condition to profit maximization. So, short run supply curve for any individual firm can be derived from these two condition that is condition one shutdown condition two produce the profit maximizing level of output. So, if price is less than minimum of ABC firm would not supply output would be equal to 0. So, any level of price which is less than minimum ABC firm would not supply so obviously if it is shutdown then output would be equal to 0. For such price supply curve will coincide with the vertical axis because at this price if the output is 0 the supply curve will coincide with the vertical axis. Whereas, for any price above minimum of average variable cost the firm would choose an output level that would satisfy the condition of profit maximization. So, supply curve of the firm would be identical to the short run marginal cost curve above the minimum point of average variable cost and industry supply curve can be obtained by horizontal summation of the supply curve for all the firms in the industry. So, the point here to note that any point in the minimum below the any point any price point below the minimum point of ABC there is a shutdown. So, we can start at the starting point for the supply because if the price is at that level then only the output will be produced and the supply will be given to the market. So, that is the starting point and that is why if you look at where ABC is minimum may be ABC is minimum when it is actually the marginal cost curve cuts the ABC at its minimum point. That is the reason we consider the marginal cost of the marginal cost of the firm in the short run is the supply curve not the entire marginal cost curve rather the that segment of the marginal cost curve which lies above the minimum point of average variable cost that is how is the short run supply curve in the in the perfect competitive market that is for the firm and if you do a horizontal summation of all supply curve all individual supply curve for all competitive firm then we reach to the market supply curve. Let us see graphically how we reach to the market supply curve this is our short run average cost curve this is our average variable cost short run average variable cost and its minimum point marginal cost curve will intersect. So, this is the corresponding to this this is p star this is our equilibrium price that is p star. So, now how to identify the supply curve so p star is the price that is decided on the basis of market price any price if it is goes below this p star p star to double p star any price if it is goes below that then the market or the sellers they will not supply in the market and that is the reason if you look at this is the starting point of the supply curve and the segment marginal cost segment which is lies above the minimum point of the average variable cost that becomes the supply curve for the firm. So, the short run supply curve is the that segment of the marginal cost curve which lies above the minimum point of average variable cost because if you look at that is the starting point of the supply if price goes below that generally the generally the supplier they are not supplying the product into the market. Now, we will just take a numerical example to understand in a typically when we take it in the real life case when we have a cost function given when we have a demand function given how to identify what is the shutdown condition or how to find out the price below which the firm generally not supplying any product to the market. So, we will take the market demand curve that is we will take the market demand curve that is D that is equal to 25 minus 0.5 p and we will take the supply that is 10 plus 1.0 p. So, if we now and the cost function we will take as 25 minus 2 q plus 4 q square. Now, we need to find out should the firm produce in the short run and if they are producing in the short run how much quantity they should produce. Now, from the demand and supply function we will try to find out what is the equilibrium price or what is the market clearing price where the seller and buyer they will sell and buy whatever they would like to interest. So, the demand curve is 25 minus 0.5 p and the supply curve is 10 plus 1.0 p. So, this is typically the demand is equal to supply if you solve this then we will get p is equal to 10 and q is equal to 20. So, p is equal to 10 is the equilibrium price and q is equal to 20 is the equilibrium quantity or we can call it market clearing price and market clearing quantity. Now, what is the next task we have to do in order to find out the minimum point the shutdown point. We need to find out the profit maximizing level of output and how to find the profit maximizing level of output that is again through the profit maximizing condition that is marginal revenue is equal to marginal cost and the slope of the MC should be greater than the slope of the marginal revenue curve. So, in the long run if you remember what is the equilibrium condition the long run before going to the long run, long run equilibrium condition is where the long run average cost curve should be equal to the p which is equal to m c taking the same thing in the short term because if you look at m c is equal to m r, m r is also equal to p in case of the perfect competitive market structure. So, if it is m r is equal to m c we can also reframe that as m c is equal to p because m r and p is equal in case of the perfect competitive market structure. So, for profit maximization for profit maximization we know that marginal revenue is equal to marginal cost and which is also equal to p. So, now what is marginal cost? Marginal cost is minus 2 plus 8 q that is maybe how we get this m c we get this m c by taking the derivative of the total cost with respect to q. So, minus 2 plus 8 q now this minus 2 plus 8 q has to be equal to the price as price is equal to marginal cost. Now, to solve it for q it will come 1 by 8 p plus 2 now we know that firm will produce till the time p is greater than equal to average cost. Or we can say average revenue is greater than equal to average variable cost as in case of perfect competitive market structure p is equal to average revenue. So, to find that this p is equal to average revenue this is how we say that at any point of time if r is greater than equal to a b c or p is greater than equal to a b c firm will continue the production. Now, we will find the total variable cost total variable cost is minus 2 q plus 4 q square and through this we can find out the average variable cost and average variable cost is minus 2 plus 4 q. So, as we know that a b c is a linear function and as it is a linear function it has no minimum. So, the firm would produce the quantity which is q is equal to 1 by 8 that is p plus 2. So, that is equal to if you simplify this again 1.8 p is equal to 10 as you have decided the equilibrium price that is 10 plus 2. So, this comes to as 1.5 units. So, q is 1.5 units now what is total revenue total revenue is p multiplied by q. So, p multiplied by p is equal to 10 q is multiplied by q is 1.5. So, 10 multiplied by 1.5 it comes to 15. So, q is equal to 1.5 total revenue is equal to 15. Similarly, what is the total cost? Total cost we have to put the value of q in the total cost and there we get the total cost is equal to 31. Now, what is the profit here profit should be ideally total revenue minus total cost and total revenue minus total cost if it comes total revenue is 15 and total cost is 31 which is minus 16. So, this cannot be called as profit rather this is loss. So, in this case in this cost function if they are operating at a profit maximizing level that is p is equal to m c they are they are not getting the profit rather than that they are incurring loss. So, now we know that the loss is equal to minus 16 or maybe we can say loss is equal to 16. Now, what is our fixed cost? So, if you remember your if you remember your cost function cost function is 25 minus 2 q plus 4 q square. So, here this part is average variable cost this plus this this part is variable cost and this part is fixed cost. So, whatever the loss that is less than the fixed cost that is equal to 16. So, the firm what will the what is the thumb rule or what is the decision for the firm now? Firm would produce 1.5 unit and incur a loss of 16, but the natural question comes here that why they should why the firm should produce when they are getting a loss of 16 rupees. Because if you remember the shutdown condition what we discussed till the time they are covering the variable cost they should produce because it is still profitable for them that they are not incurring fixed cost by shutting down the operation 0.1, 0.2 is here if we look at the fixed cost is more than the loss. So, if they are incurring it if they are producing at least they are paying less or they are incurring less loss, but if they are shutting down they have to pay 25 rupees which is equal to the fixed cost. And 0.2 is that since this is a short run situation the possibility is that even if they are incurring loss now at least if they are continuing the production if they are continuing the operation at least now when it is goes to the long run scenario at least they will incur a normal profit or they will incur a super normal profit. And short run since the time period is short always the producer would like to continue the production even if they are incurring the loss with the aspiration with the hope that they are going to at least get the profit at least in the long run. So, now next we will move to the long run equilibrium and how the short run is different from long run because long run is the situation where all the inputs are variable and the output can be increased by changing all the inputs there is no fixed cost in the long run. So, in the long run the perfect competitive firm only on the normal profit there is no case of loss there is no case of super normal profit all the firms they are normal profit in case of a perfect competitive firm. This is due to unrestricted entry into and exit of firms from the industry in the long run. So, if you remember one of the characteristic what we discuss in the case of characteristic of perfect competitive economy is the free entry and free exit. And this is the main source of source of this is the main point that why the perfect competitive firm just unlike the normal profit. To extreme possibility generally it may happen we can discuss to extreme possibility and then from there we can lead to the fact that why the firm only they on the normal profit in the case of the long run. So, one firms earning super normal profit and second firms incur losses in the short run even the first case the firm is earning super normal profit in the long run. Taking this as a situation let us see how generally the firms end in a situation where they just get the normal profit. Assuming that if some of the firm they are just earning the super normal profit in the short run. Now, what is the what will the outcome or what will be the consequence? Super normal profit some of the existing firms they are making profit in the super normal profit in the market. There is free entry so that will that will be the incentive for the few more firms to go and operate in the market because it is profitable market and some of few of the firms they are getting profit over here. New firms enter into the market there is no restriction on entry. Supply increases because they also go and produce the same product because this is the market where the uniform product or the identical product gets produced. With the entry of new firm supply is of the market increases where assuming there is no change in the demand because when the firms get profit that may not profitable for the buyers. So, if buyers if it is not profitable may be they are not demanding more in the market. Existing firm on super normal profit which attracts the new firms to enter into the market new firm enter into the market no change in the demand supply increases this lower the market prices because supply is more and demand is less. The process of adjustment continue till the time price equal to the long run average cost that is average revenue is equal to average cost which is again equal to the marginal revenue and marginal cost. So, in this case it is a case of the normal profit where average revenue is equal to the average cost. So, the entry of new firm will continue to come till the time at least all the firms they are not getting the normal profit in the market. So, if you look at the super normal profit of the existing firm are squished until all the firms in the industry on the normal profit. Then we will take the second situation where some of the firm or maybe existing firm some of the existing firms they are getting or they are incurring loss. Now, what would be the outcome since this is long run and they are already incurring loss from the short run onwards. This would force few of the producer or few of the sellers to leave the industry in the long run because they are not they may not able to sustain loss for the long period of time. Their exit from the industry cause a reduction in the supply of the product and as a result equilibrium price in the industry increases. So, now there is a decrease in the supply demand remain constant the there is a increase in the equilibrium price of the industry. The process of adjustment again continue to the point where the marginal firm no longer earn losses or we can say till the time price line is tangent to the average cost. So, the process of adjustment continued to the point where the managerial firm the for the marginal firm no longer earn losses. Until the price turn till the time till the price line tangent to the average cost and if the price line is a tangent to the average cost that is how we get the normal profit. Equilibrium occurs at a point where price is tangent to the long run average cost and all the firms make normal profit in the long run. So, equilibrium occurs at a point where price is tangent to the long run average cost curve and all the firm they just earn the normal profit. So, whether you take the case of super normal profit, whether you take the case of the super normal loss, this is not going to continue in the long run at least in the perfect competitive market structure which has a significant feature as free entry and free exit and because of that at the end of the day if you will find all perfectly competitive firm they are just getting the normal profit even if they are getting a super normal profit or the incurring loss. Generally that in a time period generally they again come back to a situation where all the firm they are just getting the normal profit. So, the condition from the profit maximizing behavior of the firm from the long run immerse from here that is P is equal to marginal cost is equal to marginal revenue which is equal to the long run average cost curve. So, we will just see the graphical representation that how graphically we can reach to a long run equilibrium. This is P which is also equal to average revenue and marginal revenue. Here we take the quantity where we take the average revenue marginal revenue and price and this is the long run average cost curve. This is the short run average cost curve. This is the short run marginal cost curve and this is the equilibrium point and this is the equilibrium level of output. So, what is the profit maximizing condition in case of long run that is long run average cost curve is equal to the short run average cost curve equal to the short run marginal cost curve equal to the marginal revenue and equal to the average revenue. So, the equality of long run average cost curve, short run marginal cost curve, marginal revenue and average revenue that leads to the long run equilibrium, long run profit maximization. Then we will see the supply curve in case of the long run market supply and long run individual firm supply in case of three different type of industry that is constant cost industry, increasing cost industry and decreasing cost industry. So, if you remember the in case of short run the market supply is horizontal summation of the individual firm supply curve and how we get the individual firm supply curve, individual firm supply curve is that segment of the marginal cost curve which lies above the average variable cost. But that is that cannot be done in case of the long run because in the long run at least we are not checking the short down condition it is actually exit from the market. So, in the long run we will see that whenever there is a changes in the price, whenever there is a changes in the factor of production it is not only due to change in the price, also due to the change in the factor of production the increase or decrease in the prices of the factor that also lead to the change in the supply. So, that will analyze through the three different industry that is constant cost industry, increasing cost industry and decreasing cost industry. To start with we will first analyze the constant cost industry. Constant cost industry is an industry in which cost of production remain constant as output in the industry expand means the scale of output is increasing at the constant cost of production there is no increased cost of production. Now we know that whenever there is a super normal profit new firms enter into the market. What will happen to the supply of the product as new firms enter into the industry? Obviously supply will increase because new firm they have entered into the industry. What happens to the price of the product? Price is decreases because given the demand then supply is more and demand is constant supply has increased. So, now supply is more than demand and that leads to decrease in the price. So, price goes back to where it was before the demand change, but there is no more output being produced by more firm. So, if so the price goes back where it was before the demand changes, but there is no more output is being produced by more firm because they know that if they are increasing the supply that leads to decrease in the market price and it is no more profitable for the existing firm at least. Note that if price did not drop enough there would be still the positive economic profit and firm would continue to enter the industry. So, if price is not decreasing significantly still there will be some amount of the economic profit and which will again act as an incentive for the firm to enter into the industry. The firm should continue to enter in the industry supply would keep increasing and the price would drop some more because since there is a new firm still entering still supply will increase and price will again decrease more. The second one is if the price drop too much it would not cover cost per unit there would be losses. So, at least they are not getting only the super normal profit also they are not getting the normal profit rather they are incurring loss. Firm would leave the industry supply would fall and the price would come back just covering the cost of the price would come back of just covering cost per unit. So, either if it is just dropping a bit again new firm will continue to come because still there is some amount of profit. If it is drops too much the existing firm they incur loss and even they are not covering up their cost per unit they prefer to exit the market which will reduce the supply and the price would come back of just covering the cost per unit. So, what has happened as a result of increase in the demand in the cost and cost industry? We now have the same price we had before, but we now have more output because you have more firms in the industry. So, in a constant cost industry firm will produce as much or as little as the economic demands at a price which is just enough to cover the cost per unit they will not produce more than that because it is a constant cost industry firm will produce only whatever is the requirement on the basis of the demand at a price which is just enough to cover the cost per unit. It means the long run supply curve in a constant cost industry is horizontal because price is fixed and the supply they increase on the basis of the demand whenever there is a increase in the demand they just cover up that at the typical price. Now, we will see what is the graph how is the graphical representation of the long run supply curve in case of constant cost industry. So, this is our demand curve this is the demand curve this is S 1 this is S 2. So, this is S 0 this is S 0. So, this is our P 0 and at the same price will continue to supply more. So, that is why this is our long run supply curve and this is the price that is P 1 this is one equilibrium point this is another equilibrium point. So, the long run supply curve is constant because they are not producing more they are just increasing the supply just on the basis of the demand that is comes from the consumer. So, this is the long run supply curve in case of constant cost industry which is just a straight line and it is parallel to the x axis. Then we will take this case in case of the increasing cost industry and decreasing cost industry. Now, what is the increasing cost industry? Increasing cost industry is when they increase the scale of output the cost of production also increases. So, in case of in case of increasing cost industry factor prices rise as the new firms enter into the market and existing firm expand the capacity. Because new firms enter into the market they require input they require factors and also the existing firm they enter they expand their capacity they also need to factor and as well since the demand is increasing the factor price also increasing given the supply at that same level. So, if the inputs are specialized factor prices are likely to rise when the increase in the industry wide demand for inputs to products increases. So, demand remain if you look at if demand is the new firms enter into the market existing firm expand the expand the production capacity that leads to increase in the industry wide demand for inputs and if the inputs are specialized again the factor prices are likely to increase. The rise in the factor cost or the increase in the factor cost to force the cost for each firm in the industry and increase the price at which firms earn the zero profit. So, when there is a increase in the factor cost that also lead to increase in the cost of the each firm because now they are spending more on the incurring the incurring the expansion of the factors and the inputs and increase the price because if input cost is more obviously the market price has to be more because that is if the price is not covering the input cost the firm will prefer to leave the market if they are not getting the profit. Since it is a long run at least they should get the normal profit. So, increase in the factor price would force the cost of the firms to increasing and also the increase in the price because at least they feel that the unit cost should at least earn which the firms earn zero profit. Therefore, in case of increasing cost industry the long run supply curve is upward sloping because increase in the new firms entered into the market existing firm expand the size. Demand for input increases and sometimes there is also demand for specialized input that leads to increase in the cost of production for the firms that leads to increase in the market price and that is the reason in case of in case of increasing cost industry we get a upward sloping supply curve and that will check graphically that how we get a upward sloping curve in case of increasing cost industry. So, this is increasing cost industry we are finding out the long run supply curve. So, we have D 0, we have D 1, then we have S 0 and then we have S 1. So, this is E 0, this is E 1 and corresponding to this we have P 0, we have P 1 and if you join this 2. E 0 to E 1 we get a long run supply curve. So, it is upward sloping in case of increasing cost industry and why it is upward sloping because the factor price increases which leads to the increase in the which leads to the increase in the cost of production for the firm and also which leads to the increase in the market price and that force the in fact that force the firms to charge a higher price because they have to at least cover up the unit cost what they are incurring to produce the product. Now, we will check the decreasing cost industry. So, in case of decreasing cost industry if input price declines when the industry output expands individual firms marginal cost curve shift down and the long run supply curve is downward sloping. So, since in case of decreasing cost industry when the scale of operation increases it increases with a decreasing cost of production. So, that has to given a reason that if because of the decrease in the input price. So, if input price declines when the industry output expands individual firms marginal cost curve shift down because the per unit cost decreases and the long run supply curve is downward sloping. So, it is a case of decreasing cost industry where the scale of operation increases cost of production decreases because of less input price which leads to decrease in the marginal cost marginal cost shift down and that lead to decrease in the long run supply curve in case of a perfectly competitive market structure typically in case of decreasing cost industry. So, input price may decline to the zero profit condition when output increases and when new entrants make it more cost effective for other firms to provide services to all firms in the market. So, input price may decline to the zero profit condition when output increases and when new entrants make it more cost effective for the other firms services for the all firms in the market. So, we will see the graphical representation of the decreasing cost industry. So, this is a long run supply in case of decreasing cost industry d 0 then we have d 0. So, d 1 s 0 we have s 1. So, we have e 0 we have e 1. So, this is the first equilibrium this is the second equilibrium and if you do this then this is our long run supply curve because this is a decreasing cost industry expansion is at a decreasing cost per unit and that is the reason we get a downward sloping long run supply curve in case of the decreasing cost industry. So, in case of cost and cost industry the long run supply curve is a straight line horizontal in case of increasing cost industry the long run supply curve is upward sloping because the cost of production increases when the scale of operations expand or when new firms enter into the market and in case of a decreasing cost industry the long run supply curve is downward sloping because the cost of production decreases when the firm or may be the scale of operation increases at a decreasing cost per unit of production. Then we will see that what is the effect of tax or how the buyers and sellers they borne the tax imposition of the tax of the tax imposition of the tax of the borne the burden of the tax in case of a perfect competitive market structure. So, we will talk about typically three type of tax one imposition of a lump sum tax second imposition of a profit tax and finally, the imposition of a specific sales tax. So, if you look at the lump sum tax it is the effect of lump sum tax is like a effect of the fixed cost because it is on its the effect is on the fixed cost and if you look at the short run if there is a change in the fixed cost it is not going to change the it is not going to change the equilibrium position because till the time it is not affecting the marginal cost it is not going to change the equilibrium position and in case of similarly in case of profit tax again it is a the effect is like a fixed cost, but in the long run the possibility is that that supplier will shift, but in case of specific sale tax the imposition of tax is dealt through the elasticity of supply and that talks about that how much is the sensitivity of the supplier with respect to change in the price. So, we will start our start our explanation for the imposition of the tax from the lump sum tax and lump sum tax is like it is one time lump sum. So, it is the the effect is like a fixed cost at least in the short run there is no effect, but when it comes to long run may be there is some effect because there may be decrease in the output. So, this is the average revenue that is marginal revenue here we get the short run total cost curve and this is the average fixed cost then there is a increase in the average fixed cost after the imposition of the tax that is why this is average fixed cost change in that average fixed cost and with the change in the average fixed cost the short run average cost curve is increasing that is SITC 1 and marginal cost generally intersect the average variable cost and average cost at its minimum. So, if you look at in case of lump sum tax only there is a increase in the fixed cost and that shift the average total cost curve there is a change in the average total cost curve otherwise there is no much effect at least in the short run, but in the long run at least to the sum level of output it is going to influence. But if you look at if it is short run someone is just running the normal profit then in the long run he has to incur loss because of the lump sum tax, but in the short run if someone is getting super normal profit at least after imposition of tax you will get only the normal profit or there is some reduction in the amount of profit, but at least he is not incurring loss. So, in this situation at least they are getting affected through the lump sum tax because they are moving from one possibility to another possibility that is either from super normal profit to normal profit or from normal profit to loss. Then we will take the effect of the profit tax. So, profit tax is also somehow in the same category that this is the the effect of like a change in the fixed cost, but sometimes due to this the supply changes at least in the long run and it has it leads to increase in the price. So, this is the demand curve, this is the supply curve, this is the equilibrium quantity, this is the equilibrium price. So, at least in the short run it is not much of change, but when it takes to the long run it is generally shift the supply to the up and that leads to increase in the price and decrease in the quantity demanded. So, the effect of the profit tax if you will see if it is more much felt in the long run rather than the short run because short run it has nothing more to do or the effect is not much, but in case of a long run that leads to decrease in the supply because there is a imposition of profit tax that leads to decrease in that leads to increase in the supply which leads to increase in the price and decrease in the quantity demanded. And what is the specific effect of on firm because of this profit tax again the same explanation if there are running super normal profit in the short run at least it is not much because they will just there will be some reduction in the profit, but if they are just getting the normal profit the possibility that they may land into incurring loss at least in the long run with the imposition of the profit tax. Now, we will analyze the case of specific sales tax and this effect of the specific sale tax is more on what is the elasticity of supply. If the elasticity of supply is more generally the firms pay less for the tax and if it is less than the firm has to pay more for the tax. So, it is all about the elasticity of supply curve that decides that what is the effect of specific sales tax on buyers and what is the effect of specific sales tax on the seller. So, if you will take different scenario and we will see how the imposition of specific sales tax affecting the buyers and seller. So, if you take a regular demand curve and the supply curve then this is the demand curve this is the supply curve and when there is a imposition of tax that is shown through the change in the supply. So, in this case this is the tax and this is the change in the price after imposition of tax. So, if you look at here the entire tax amount is not passed to the consumer entire tax amount is not passed to the consumer in the firm of increase in the price still this much amount is paid by the seller. So, if you look at here the imposition of the specific sale tax is equally on both the side buyers and seller if it is a case of the regular demand and supply curve. Now, suppose we will take another example where the supply curve is elastic than the previous case and here if you look at this is the amount of the tax and this is the change in the price. So, in this case in the if you make it a comparison between the first case and the second case if the supply since the supply curve is more elastic the major part of the burden of the tax is passed to the consumer in the firm of increase in the price. But in case of the first case if you look at equally both the seller and buyer they were paying the tax amount, but here the supply curve is elastic. So, there is some leverage in the seller side to pass the burden of tax to the consumer in term of increase in the price and that is why here it is more as compared to this because the change in the price is more in case of the second case and by through change in the price generally the tax is passed to the consumer or may be majority portion of the tax is passed to the consumer. Then we will take a case where the supply curve is perfectly elastic and this is the demand curve here we can take the may be demand and supply and here the price. So, in this case if you look at this is the tax amount and the entire tax is passed to the consumer in the firm of increase in the price because here the supply curve is perfectly elastic any small change in the price will lead to greater change in the supply and that is the reason if you look at the entire supply entire tax is entire tax burden is passed to the consumer. So, more elastic is the market supply higher is the proportion of specific tax that can be passed to the consumer. So, more elastic is the supply higher the burden to the consumer. So, in case of lump sum tax and fixed tax in case of lump sum tax and profit tax the effect is like a fixed cost of production and if you look at it is not getting much of effect in case of short term, but in case of long run the possibility is that they may incur loss if they are just getting the normal profit. And in case of specific sales tax it is always the elasticity of supply that decides that how what is the effect of what is the effect of this imposition of tax on the sellers. If supply is more elastic burden is less if supply is less elastic the burden is more. And we will look at some of this efficiency criterion and perfectly competitive market. So, if you remember in the initial class we talked about the allocative efficiency and productive efficiency. So, we will check in the first case what is the resource allocative efficiency in case of a perfectly competitive market. Any firm they produces they produce at the marginal revenue which is equal to the marginal cost and since marginal revenue is equal to p for competitive firm then p is also equal to marginal cost. Now, what is the meaning? Meaning here is the marginal benefit that is through demand and marginal cost that is supplier using the society resources. So, society marginal value of resources is equal to the opportunity cost of using resources and that is how we use the allocative efficiency or that is how the allocative efficiency get satisfied in case of a perfectly competitive market. And when we again explain this through the consumer surplus and producer surplus. If you look at the graph over here the consumer surplus is if you remember the at least the definition the consumer surplus is one where any price above the market price if the consumer is ready to pay more and if they are paying less generally they get some amount of the consumer surplus. So, consumer surplus area in specific graph if you look at a B P P is the consumer surplus area because that is the above the market price and supplier surplus is that is C B P E. So, that is again C P E and B and competitive equilibrium maximize the market surplus. Now, the question is what about Q 1? What is the what about the level of output? So, the second case is productive efficiency. Here the firm produces at the minimum of average total cost in the long run and firm economizing on resource use and if not competing firm would undercut its price and capture the extra profit. So, since the economizing on the resource use that is again satisfies the productive efficiency. Then we will see what is the application of perfect competitive market in the real world and we will take the typical example of stock market. As I said the stock market share market somehow share at least some of the feature of the perfect competitive market. So, if you are taking the example of stock market whether this is a perfect competitive market in the real world. Let us analyze what are the similarity and what are the dissimilarity. The price of stock usually determined by the market forces of demand and supply of stock which goes with the perfect competitive market structure. Individual buyers and sellers have very little impact on price as they are the price taker. Again the same situation what we generally face in case of a perfect competitive market structure. Perfect mobility of resources and here also the resources are mobile as stock is bought and sold frequently and information about the price and quantity are readily available. So, there is full information and perfect information to all the people those who are in the stock market buyers and seller. So, price decided by the market demand and market supply first feature. Individual buyer seller has less impact second feature perfect mobility of the resources third feature and full information about the product price fourth feature. All these four features get matched or it comes from the characteristic of a perfect competitive market structure. Now, we need to see that whether there is imperfection, but before that we see that whether like in before couple of minutes we are talking about the efficiency of the or whether the productive efficiency and allocative efficiency get satisfied in the perfect competitive market structure or not. So, to take that it is a Q and same thing happens in case of stock market that fund flows into the stock and resources flow into the huge and in which the rate of return. So, stock price provide a signal for the efficient allocation of investment in the economy. So, till the time all these features are matching with the perfect competitive market structure, but still there are some imperfection and that is why we cannot say that there in a rigid form there are the perfect competitive market structure, but somehow there is a close resemblance of this type of market structure with the perfect competitive market structure. Now, what are the what is the imperfection over here? Imperfection occurs here also those stock market is very close to perfect competition. For example, sale of huge amount of stock by a large corporation will affect the price of stock which goes against the characteristic of perfect competitive market structure that one seller or one buyer cannot influence the price of the product. So, to summarize we can say that perfect competitive market stock market closely come to the perfect competitive market, but still it is there are some imperfection occurs. So, in the next class again we will take one more example like whether credit card industry comes in the category of perfect competitive market structure or not and then we will start our discussion on the monopoly. So, to summarize whatever we discussed today is we talked about the market supply in the short run which is the segment of MC which lies above the average variable cost. We talk about the long run equilibrium, we discuss about the long run supply curve in case of increasing cost industry, constant cost industry, decreasing cost industry and we talked about the imposition of tax and we talked about the allocative efficiency and productive efficiency whether that is getting satisfied in case of a perfect competitive market structure or not. So, we will carry forward our discussion of perfect competitive market structure, application to real world and monopoly in the next session.


So if you look at the Indian EV market as of now, so currently the market is not yet ready for mass adoption of electric vehicles just because the cost of an electric vehicle is higher than an internal combustion engine vehicle for a comparative size and performance. But going forward in the next 10 years we believe that due to rapid declines in battery prices, electric four-wheelers will reach a parity with ICE vehicles, inter combustion engine vehicles which will lead to their wider adoption. This does not mean that there will not be any early adopters or there will not be any sales of electric vehicles still 2030. It just means that wider adoption will happen at a slightly later point in time than when you compare it to other countries. So in a country like India infrastructure usually follows demand. So you need to have I guess in some sense a little bit of demand coming in at first and then infrastructure can follow that but again this is not on a pan India basis on a smaller area basis right. So you cannot have a demand coming up in all of India and then only you build infrastructure. So in a country like India it is usually the fact that infrastructure follows demand and it's not like demand follows infrastructure. So I guess we should have some sales of electric vehicles before an infrastructure is built out on a pan India basis and obviously this does not go in isolation. So while I say electric cars should come first it does not mean that you flood the market with cars and then only build infrastructure. So regarding the chicken and egg situation on charging infrastructure and any vehicles I think both of these should go hand in hand but obviously the starting point should be sale of electric vehicles. Once you have a certain number of electric vehicles on the road that itself creates demand for some charging infrastructure whether it's on a private basis or whether it's on a public charging infrastructure. When you're talking about localization of India I guess we should not be thinking about 100% localization in one go. Obviously this has to be done in a step-by-step basis. We can still import some of the components that we are not able to manufacture and manufacture all that we can. Maybe we start with a 40% local manufacturing in the first few years and then gradually build it up. So that is how it should go up rather than just focusing on getting a fully 100% pure DC Indian vehicle. Shared mobility is going to be one of the biggest enablers for electrification of four wheelers in the country.


Amen. Alright. Acts chapter 13. So Acts chapter 13, especially starting in verse number 4, which we're going to start tonight. We looked last week at the ascending out of the Holy Ghost. Paul and Barnabas, or Saul and Barnabas as it is at the beginning of Acts chapter 13 are sent out by the Holy Ghost himself. So we looked at the Holy Ghost and the Holy Ghost, the Holy Spirit's interaction with us in our lives today. We're going to start here in verse number 4. Acts chapter 13 is the beginning of what's known as Paul's first missionary journey.  I have a little map that's printed out with the kind of the spots that they stopped that are pointed out. Most of these spots, except for the last one, are pointed out in Acts chapter 13. It pretty much encompasses the whole missionary journey. I just want to give you an idea. I think it's important that we see the things that they went through and how far they went and where they went to give us some context of what's happening in this story. If you look down at verse number 4 with your map in your hand, the Bible says, so they, of course, verse number 3 says, and they sent them away. Well, where did they send them? Okay, so verse number 3 says, and when they had fasted and prayed and laid their hands on them, they sent them away, verse 4. So they being sent forth by the Holy Ghost, departed unto Salucia. So Salucia, Antioch is right on the western coast of the Mediterranean Sea, on the east side, I guess, of the Mediterranean Sea. And Salucia is the port city that is next to Antioch. Antioch is set a little bit inside. You know, we're looking at what is, what today would be modern day Syria. Antioch is set just inside, it's not a coastal city, but Salucia is the coastal city. And it says, and from thence, they sail to Cyprus. So they go to the coastal city, and right away they get in a ship, and they sail to Cyprus, which is the large, the large island in the northeastern corner of the Mediterranean Sea, just south of what we would call modern day Turkey today. Okay, so if you look at verse number 4 to verse number 5, we've basically traveled about 200 miles by sea, just between those two verses right there. So they went from Salucia, and they sailed to Cyprus, and when they were at Salamis, Salamis is a city on the island. Okay, on the eastern side of the island, you can see it marked on your map there. And here they start preaching. Okay, and when they were at Salamis, they preached the word of God and the synagogues of the Jews, and they also head John to their minister. So here we have a couple of things that we need to point out, because there's a big, there's a couple of big events that happen in this first missionary journey that we need to point out. And the first one is in verse number 5 where it says there's two things I need to point out in verse number 5. First of all, it's not just Saul and Barnabas, there is John Mark with them at this point. Okay, so that's the first thing we need to kind of take note of. The second thing is they start out preaching to the Jews. So that's another thing that we need to recognize because there is a very important doctrine that is actually put into place, or put into, that is demonstrated in this first missionary journey. So we need to first understand as we get into the preaching of Saul this evening that they started preaching in the synagogues to the Jews. They were preaching specifically to the Jews. Look at verse number 6. So we have Saul, Barnabas, and John Mark is there with their minister, meaning he's kind of the apprentice. He's kind of the helper. He's not the main evangelist. He's there to just help them out, do what they need to be done. He's there to be a servant, so to speak, a helper to them. Look at verse number 6. And they got through the Isle onto Paphos. So there we go again. Now we've traveled another, I don't know, 100 miles or so. Yeah, above another 100 miles. They've gone now from verse 5 to verse 6. They've traveled all the way from the east side of the island of Cyprus all the way to the west side of Cyprus. They found a certain sorcerer, a false prophet, a Jew, whose name was Bar-Jesus, which was with the deputy of the country, Sergius Paulus, a prudent man who called for Barnabas and Saul and desired to hear the word of God. So I've already talked about Bar-Jesus. I'm not going to spend a lot of time on him. I've compared him with the sorcerer that we've already seen in the book of Acts, and we looked at, you know, why Paul or Saul at this point was so hard on Bar-Jesus and not so hard on the other sorcerer because basically Bar-Jesus was trying to stop somebody from getting saved. He was literally an enemy of the Gospel here, which is why Paul calls him out basically as a son of the devil. All right? So he's going after, Sergius Paulus is a ruler. This is kind of a similar situation to the Ethiopian eunuch. So this is a ruler. He's some sort of man in charge of Cyprus. It calls him a deputy. So he calls for Barnabas and Saul, and he desires, he wants to hear the Gospel. All right? He wants to hear the truth. But Alimus, this Bar-Jesus, tries to stop them. And then look at verse number nine. Now this is where, this is the last time we, you know, we start, we stop calling Saul, Saul, and we start calling him Paul at this point. I'll tell you why I believe that that is, but I believe that it's actually up in verse seven. You can see the deputy of the country. His name was Sergius Paulus. So here was a, he was a Roman ruler. His last name was Paulus. Basically, Saul is, is Paul's Jewish name, and Paul's like a Roman version of his name. Okay? And I believe that this is very symbolic that, you know, this isn't like John chapter one where Jesus literally renamed Simon. Okay? This is a different situation. Jesus literally says to Simon in John chapter one, he basically says, you know, I'm gonna call you Cephas now. Cephas meaning Petros in Greek, meaning Peter in English as it's in our Bible, you know, from then on out. But, you know, Jesus literally renamed Simon. Here it just says that Saul, you know, is called Paul. And then from this point on in the Bible, I don't think it's an accident that it's this way in Acts chapter 13, that in Acts chapter 13, we start calling him by his Roman name. We start calling him by his gentile name in Acts chapter 13. I don't think that is an accident. Turn to first Corinthians chapter nine and verse number 19. Turn to first Corinthians chapter nine and verse number 19. So all that to say this, Jesus didn't rename Saul into Paul. He just started using his, his gentile version of his name, his Roman version of his name instead of using Saul. But it's interesting to see in first Corinthians chapter nine, look at verse number 19 where Paul says, Paul kind of has this philosophy in his life. Paul is a very persuasive man.  He's, he's very persuasive. He's good at what he does. We'll see that again in this chapter. But look at verse number 19 in first Corinthians chapter nine. The Bible says, for though I be free from all man yet have I made myself servant unto all that I might gain the more. What this is saying is Paul saying, I mean, Paul has done some, some thinking about how to reach people. Paul has done some thinking about how he can relate to different people from different places. Look at verse 20. He says, and under the Jews I became as a Jew. Well, Paul was a Jew. So that was easy that I might gain the Jews to them that are under the law as under the law that I might gain them that are under the law. So Paul is saying in verse number 20, he's like, hey, when I'm talking to the Jews, he's like, I'm going to come at them in ways that they can understand. And that's what he's trying to do when we see him preach his sermon tonight. What is he doing? He's trying to come at the Jews as a Jew. He's trying to talk to the Jews as, you know, children of Abraham. That's why he starts talking about all the prophets that he's going to talk about, not to get ahead of myself, but Paul is very good at relating to knowing who his audience is. Let's put it that way. Look at verse number 21. He says to them that are without the law, these would be the Gentiles as without the law. Being not without law to God, but under the law to Christ, that I might gain them that are without the law.  And so you'll see after Acts 13 is over, you'll understand why he's going by the name Paul. Okay, because after Acts chapter 13, you can see that he is largely preaching to the Gentiles, not to give away, you know, the whole sermon tonight, but there's a definite shift in Acts chapter 13. There's a definite shift that takes place in this first missionary journey from the Jews to the Gentiles. And I don't think it's an accident that it's that chapter that his name is not changed, but he goes by Paul instead of Saul in Acts chapter 13. Alright, go back to Acts chapter 13. Go back to Acts chapter 13. And of course, where do we leave off? Verse number 10. So now he's dealing with Bar-Jesus. I'm not going to spend a whole lot of time here. He calls him thou child of the devil. Look at verse number 11. He says, Behold the hand of the Lord is upon thee, and thou shall be blind. He strikes them with blindness. I talked about that as well. God has used blindness as a definite way to both help the Gospel and to, you know, further his kingdom on earth in many different cases. I talked about that in a tale of two sorcerers. Go ahead and, you know, refresh that sermon not to get back into that.  So he basically strikes this man with blindness. And then he talks to the deputy in verse 12. And the deputy, when he saw it was done, believed being astonished at the doctrine of the Lord. So he gets this guy saved after he does this miraculous striking of blindness to the sorcerer. Now look at verse number 13. The Bible says, Now when Paul and his company loosed from Paphos, so loosed meaning they set sail again. Okay, they unloosed, they untied the ship, they set sail, they came to Perga in Pamphylia. Now look at your map and you'll see where they went. They went out from Paphos and they went to the northwest as it would be to a coastal city called Perga. And something very important happens here. And it's not an accident that it happens at this location. Look at verse number, the last part of verse number 13. So they sail another 150 miles or so to the southern border of what is modern day Turkey today. And they end up in this port city called Perga. Alright, so so far they've gone from Antioch, they've gone to a port city, they have sailed 100 some miles to the east side of Cyprus, they have traveled all the way across the island of Cyprus, they have preached to the deputy, one of the rulers of Cyprus, gotten him saved, and then they have sailed another 150 miles north to the southern coast of Turkey or Pamphylia as it's called here. And then the Bible says, and John departing from them returned to Jerusalem. So I want you to look at where Jerusalem is on this map, and I want you to look at where Perga is on this map. They've just gotten, you know, they've traveled, I don't know, 300 plus miles so far they've been gone for I'm sure what is several months at this point, the Bible doesn't say a timeline, but they were gone for probably over a year on this whole journey. They've been gone for several months. And at this point, Paul, where's Paul going? Paul is going further north into Turkey at this point. And there's two Antiochs too. So it's kind of that can kind of be cute, you know, confusing to people. But the next Antioch that they stop in is not the Antioch that they came from, they're heading further into Turkey or into, you know, Pamphylia as it's called here in the Bible. And before they head further in further away from Jerusalem, this John, John Mark says, Hey, I'm heading back. Okay, the Bible doesn't tell us why. Okay, the Bible doesn't tell us why John left, but this does cause a lot of controversy in about a chapter and a half from where we are today. And I'm not going to get into that controversy. I will preach through that controversy when we get there. But I just want you to note the location for now where John Mark headed back. It's a very interesting point. And I think we can kind of get into the minds of these men, get into the minds of John Mark on why he left at that point. Now look, that in mind, look at down at verse number 14. It says, Now they departed from Perga. And they came to Antioch in Poseidia and went into the synagogue on the Sabbath day and sat down. Okay, so here John leaves and they head north another 100 miles or so into this other city in Turkey called Antioch. And now they go into another synagogue. And this is where Paul is going to, you know, start preaching his big sermon in Acts chapter 13. Look at verse 15. After reading of the law and prophets, so they're in the synagogue right now. After the reading of the law and the prophets, the rulers of the synagogue sent unto them saying, He men and brethren, if you have any word of exhortation for the people, say on. It's kind of like, oops. So it's a couple of things are interesting here. Okay, so they're reading, what are they doing in the synagogue? These are the rulers of the Jews right here. What are they doing in Acts chapter 13 and verse number 15? They're basically having church. They're basically having church. They're reading the Bible. They're reading the law and the prophets. Okay, so note that as we go forward. Okay, what does Paul do into his sermon? What does he reference in his sermon? He's going to reference the law and the prophets. So he's basically speaking to them on their level. He's speaking to them on something that they should know, they should understand. They were just reading it before they said, Does anybody have anything else to add? They kind of said like, Hey, men's preaching night. And Paul is like, I'll go. And Paul gets up and he just starts, you know, exhorting Jesus to them. But he does it in a way that is exactly on the level that, please understand this. He does it on a level that they should understand. He's trying to give them every chance to the Jews. He's being a Jew here. Okay, just like he said in 1st Corinthians chapter 9. So look at verse 16. They said, Anybody want to give a sermon? And Paul says, I'll give a sermon and he stands up and Paul stood up and beckoning with his hand said, men of Israel and ye that fear God give audience.  The God of this people of Israel chose our fathers and exalted. Notice how he says our fathers. He's saying, I am a Jew too. He's relating to them. Paul is very persuasive and exalted the people when they dwelt as strangers in the land of Egypt and within high arm brought them out of it. And about the time of 40 years he suffered either their manners in the wilderness when they destroyed the seven nations in the land of Canaan, he divided their land to them by lot. He's kind of preaching through the Bible here. He's kind of just telling them the history of where he's saying, this is where we all came from. He's like, this is my history. This is your history. And after that, he gave unto them judges about the space of 450 years and tell Samuel the prophet, Samuel being, of course, the last judge right before King Saul. And he talks about King Saul in verse number 21, verse number 22, when he removed him, he raised up to them David to be their king, to whom also he gave their testimony and said, I have found David the son of Jesse, a man after my own heart which shall fulfill all my will. Of this man's seed hath God, according to his promise, raised unto Israel a savior. Now he drops it right here. Okay, so everybody look, the Jews know that the savior, look, they don't believe it was Jesus, but the Jews know in the law, if they know the Bible, they know that the savior is going to come from the line of David. So this is what he's saying. He's like, look, here's our history. He talks about Moses. He talks about, you know, the judges. He talks about, you know, the judges had prophecies. He talks about all these different things. He talks about Samuel the prophet. Then he talks about David and he references the promise to David to have the Messiah come from his line. Remember, remember the lower kingdom of Judah. They were all sons of David. The northern kingdom of Israel, it was a mess.  And of course we know that Jesus was of this line. And so he drops it and he says, look, the savior was Jesus. And look at verse 24. He says, when John had preached before his coming, now he goes to John the Baptist, preached before his coming to baptism or repentance to all the people of Israel. So he says, hey, John the Baptist, he was here to prepare the way for Jesus. And as John fulfilled his course, he said, whom think he that I am? I am not he, but behold, there cometh one after me whose shoes of his feet I am not worthy to loose. Men and brethren, children of the stock of Abraham and whosoever among you feareth God, to you is the word of this salvation sent. Now verse number 27, verse number 27, for they that dwelted Jerusalem in their rulers because they knew him not, nor yet the voices of the prophets which are read every Sabbath day. You hear what he just said right there? You know what he's, you know what he just said right there? They literally just read the prophets in verse 15 like five minutes ago. And he's saying the reason that you, you didn't know Jesus was because you sit in the synagogues and you read the prophets every Sabbath day and you don't know them. So you condemned Jesus. I mean look, if you don't believe Jesus as the Messiah, these are fighting words to you. And though they found no cause of death in him, yet desired they pilot that he should be slain. So he's like literally just calling them like even look, even if you didn't believe that he was Jesus, you murdered him. You just, you just murdered somebody. And when they had fulfilled all that was written of him, they took him down from the tree and laid him in a sepiculture. But God raised him from the dead. Look at verse 31. Look at verse 31 it says, and he was seen many days of them that came up with him from Galilee to Jerusalem who are his witnesses unto the people.  Jesus was the seed of David. Jesus was the Messiah. You killed him. He went in the grave. Notice how he doesn't get into any heavy doctrine here.  He says, and we declare unto you glad tidings, the promise which was made unto the fathers. God has fulfilled the same unto us their children and that he had raised up Jesus again and also as is written in the second Psalm, turn to Psalm chapter 2.  So now he starts quoting David. Now he starts quoting the prophets and he starts quoting prophecy about Jesus. All right? So he basically, he relates to them through their history. He relates to them through prophets. He relates to them through, you know, the promise to David and then he's going to start bringing up prophecies about Jesus. Look at Psalm chapter 2 in verse, well let me turn there myself. In Psalm chapter 2, look at verse number 7 of Psalm chapter 2. This is what he's quoting here where he says Psalm chapter 2, sorry, in verse number 7 where he says, I'll declare the decree the Lord has said unto me, Thou art my son, this day have I begotten thee. So he's bringing up all these things that David said in Psalms that were messianic prophecies is what he's doing. Look at verse number 34. And as concerning that he raised him up from the dead, now no more to return to corruption, he said on this wise, I will give you the sure mercies of David. So now he's going to talk about this idea that David when David said, you know, talked about in the Psalms, Psalm chapter 16 in verse number 10 where before he said in another Psalm verse 35, Thou shalt not suffer thine holy one to see corruption. He's literally telling them David wasn't talking about him. David was talking about the Messiah. He's relating David's comment in Psalm 1610 to the resurrection of the Messiah after three days. And then he explains why. He says it couldn't have been David. Why? Look at verse 36. For David after he served his own generation by the will of God fell on sleep. It means he died and was laid unto his fathers and saw corruption. What he's saying here is that David's bones, his grave is here. He's rotted. Corruption means his body decayed literally. That's what he's talking about here. And the Bible says in Psalm chapter 1610 it says, Thou shalt not suffer thine holy one to see corruption. Meaning David was talking about Jesus not himself. Because God raised Jesus from the dead after three days and three nights. But he whom God raised again, again, saw no corruption. He's like David was talking about Jesus. He's literally like speaking as David is not only, you know, King David, not only the David that God promised the seed of the Messiah that would come from, but David a prophet here. David had many prophecies. Look at verse 38. Be it known unto you therefore, man, and brethren that through this man is preached unto you the forgiveness of sins. And by all, now this is interesting. And by, you gotta kind of put a bracket around verse number 39 because verse number 39 relates to another verse going forward. Verse number 39 says, and by him, what? By him, here's the gospel right here. By him all that believed are justified from all things. He just lays the gospel out there. He's like okay, Jesus is the Messiah. It's not just, okay, Jesus is the Messiah. It's all that believe on him, all that trust in this Jesus. He's saying are justified from all things from which he could not be justified by the law of Moses. So what he's saying is, I mean, they're in bad shape on so many levels here. Number one, they don't understand Moses. They don't understand the law of Moses, what it was for, because they think they're justified by the law, but he's saying you can't be justified by the law of Moses. The law can't save you, he says. It never could, by the way. Turn to Romans chapter 8. Turn to Romans chapter 8. He's basically saying Jesus did what the law could not do. Look at Romans chapter 8 in verse number 30. So not only does he say that it was Jesus, you killed him, this is who David was talking about. It had to have been him. I mean, another importance of the resurrection right there fulfills that prophecy that David prophesied in Psalm chapter 16. Look at verse number 3 of Romans chapter 8. Romans chapter 8, look at verse number 3. The Bible says for what the law could not do in that it was weak through the flesh. What does that mean? What does that mean? The law can't save you. Why? Because it's, what's the weak point of the law? Think about this for a second. There's two ways to heaven. The first way is never sin. Then you're not guilty. The first way is never sin. Except no man can do that. Why? Because we're weak through the flesh. That's why. So that's why we're out soul winning, you know, and I'll talk about this in detail on Sunday night. We're out soul winning. It's really easy to explain to somebody that if I go out and I steal a car in Fresno, if I steal somebody's car, and somebody that just believes in workspace salvation, they believe, if I'm pretty good, I'm going to go to heaven.  And I said, well, judge, I sure did, but I'm really nice. Everybody laughs when I say that. I said, do you think he's going to let me go? And they go, pfft. People laugh because it's silly. Well, judge, yeah, I burned the guy's house down because I was mad at him. I ruined everything. Oh, I murdered somebody and oh, but I helped a little old lady across the street yesterday. It was like pfft. Everyone knows that that's silly. That's the problem with the law, right there. Is that our guilt, our good deeds can't cover our guilt. I don't care how many good deeds you have.  Why? Because the flesh is weak. That's why. So the law is weak through the flesh and that says God, what are we going to do about this? God sent his own son. God sending his own son in the likeness of sinful flesh and for sin, condemns sin in the flesh. So look, all that, all that to say this, Jesus did what the law could not do. And this, look, it was always the plan. It was always the plan. The Messiah was, I mean, everybody knew the Messiah was coming at some point. Paul was just saying, hey, it was Jesus and you killed him. Look at verse, verse number four of Romans eight, that the righteousness of the law might be fulfilled in us who walk not after the flesh, but after the Spirit. Just saying like, hey, we should walk within the Spirit. Now that we're saved through the Son, we should walk in the Spirit. That's what the law is for. The law is a school master to teach the unsaved that they need a Savior and then the law is there for us to clean up our act after we're saved. It's not there to save us. It could never save us. Okay, go back to Acts chapter 13. Acts chapter 13, then look at verse number 40. Just remember verse number 39 though. We're going to come back to verse number 39 in a few minutes, but go to Acts chapter 30 and look at verse number 40. Let's continue. So now he just preaching, continues preaching here and he says, beware therefore, lest that come upon you which is spoken of the prophets. Now he just starts laying out more prophecy. Behold ye despisers and wonder and perish, for I work a work in your days, a work which shall you shall in no wise believe. He's quoting Habakkuk 1.5 here, though a man should declare it unto you. How's that for a sermon? He stands up and he's like, how what if I just stood up in a sermon and I said, look, I'm going to preach this sermon and none of you are going to listen to me. He's saying, the words are even worse than that. I'm going to say, I'm going to preach this sermon and none of you are going to believe me. What I'm going to say, that's exactly what he just said to them. He just quoted the prophecy that Habakkuk said in Habakkuk 1.5. He said, someone's going to get up and declare this to you and you're not going to believe it. But look, they don't know what Habakkuk 1.5 means. They probably don't even know what it says and they just don't know what it means. They're just, they're blinded to it. Okay, look at verse 41. Behold ye despisers and wonder and perish, for I work a work in your days, a work which he shall in no wise believe though a man declared unto you. He quotes exactly Habakkuk 1.5. Look at verse 42. And when the Jews were gone out of the synagogue, the Gentiles be sought that these words might be preached unto them the next Sabbath. Very interesting right there. So, this created quite a stirrer and the Gentiles that weren't in the synagogue, they heard about this and they said, we want to hear this too. They said, they heard what Paul did in the synagogue said to the Jews and they're like, we want to know what this is about. And they said, come back next Sabbath day and tell us too. Look at verse 43. Now, when the congregation was broken up, many of the Jews and religious proselytes followed Paul and Barnabas who speaking to them persuaded them to continue in the grace of God. So, some of them believed. Okay? And that always happens. You know, some of them believed but the mass mainstream Jewish leaders did not. Okay? And look at verse 44. And the next Sabbath day came almost the whole city together to hear the word of God. It's Gentile day now. This next Sabbath day is all the Gentiles coming to just hear the word of God. Now go to Romans chapter 11. What we have happening here is replacement theology being demonstrated right here. Is what we call replacement theology.  Basically, Israel is anyone that believes. Look at Romans chapter 11 and verse number 11. But it's really cool because in Acts chapter 13 you see it, you see it historically happening right in front of our eyes here in Acts chapter 13 when Paul was preaching in Antioch. Look at verse number 11 of Romans chapter 11. I say then, have ye stumbled that they should fall? God forbid. But rather, so he's talking about you know, the Jews. He's like, why did they stumble? He's like, should have they stumbled that they should fall? God forbid. But rather, through their fall, salvation is come unto the Gentiles for to provoke them to jealousy. You have your place. Keep your finger in Acts chapter 13. Look at verse 12. It says, now if the fall of them be the riches of the world and the diminishing of them, the riches of the Gentiles, how much more their fullness. For I speak to you Gentiles in as much as I am an apostle of the Gentiles. Notice what he says there. He's an apostle of the Gentiles. I magnify in my office if by any means I may provoke to emulation them which are my flesh and might save some of them. Now go back to Acts chapter 13 and look at verse number 42. What he is saying is, is that look by the Jews not believing, by these Jews not believing, this made room for this provoke the Gentiles to come in. The Gentiles, and then the Gentiles are going to believe and it's going to provoke the Jews to emulation. What's that mean? It means it's going to provoke some more of the Jews to believe too, is what he's saying. And look, look at what it says in verse 45. And when the Jews saw the multitudes they were filled with envy. Look, it is provoking them. It's provoking the Jews that so many people, look, most of the Jews it's just making mad. It's just making them upset and they're going to start persecuting the Christians in the Book of Acts. But the Bible says that it is provoking some of them to believe. Okay. It might save some of them. Some of them is the word used in verse number, or the phrase used in verse number 14 of Romans chapter 11. So go back to Acts chapter 13 in verse number 45. So we see that Paul preaches to the Jews. Paul preaches to the Jews. Some of the Jews believe but the major event here is the shift to the Gentiles. The next Sabbath day the Jews that believed are telling them, hey, just continue, come back and all the whole city of Gentiles comes to them and he preaches the gospel to them. Look at verse 46. But verse 45, they were filled with envy and they spake against those things which were spoken by Paul contradicting and blaspheming. So now these Jews are fighting against Paul and Barnabas. Look at verse 46. Then Paul and Barnabas waxed bold. I mean, it's going to take some boldness.  Well, weren't they bold before? But here's the thing. People are fighting them now. People are actually against them. They're trying to get them. They're trying to persecute them. They're trying. It doesn't say specifically what actually they went through here. I'll give you a little bit of a taste about that in a few minutes. But it says they waxed. It means they grew stronger. They grew bold. And look, that's just true. When you go through hard times, you either fall, you either quit, or you'll get stronger. That's just how it goes. That's just the truth of everything. But these guys, they didn't quit. They didn't turn back. They didn't go to Jerusalem. They waxed bold. And they continued. And said it was necessary that the Word of God should first be spoken to you, but seeing He put it from you and judge yourselves unworthy of everlasting life, lo, we turn to the Gentiles. Romans chapter 11, right there. That's replacement theology. Look, replacement theology is, it's just what the Bible says. It's like one of the most demonstrated, I don't understand how people can't understand it or see it in the Bible. All right. Look at verse 47. It says, for the Lord commanded us saying, now He quotes a couple more Bible verses from prophets. He says, for the Lord commanded us saying, I have set thee to be a light of the Gentiles. That thou should us be for salvation unto the ends of the earth. He's quoting Isaiah 42,6. Jesus quoted the same thing in Luke chapter 2, verse 32. But He's saying that, look, this is going to be, the gospel is going to be a light unto the Gentiles. And Paul's saying, this is what we're doing. And He literally tells the Jews that are persecuting Him that. He says, you're persecuting Me that, but I told you first, but you're just fulfilling Isaiah chapter 42 and verse number 6 that we're going to, you know, first preach to the Jews and now we're going to be a light to the Gentiles. Look at verse number 48. Look what the Gentiles though, they say. It says, when the Gentiles heard this, they were glad. They were happy. They were joyful. It's exactly what the Bible said was going to happen and glorified the word of the Lord that as many were as ordained to eternal life believed. They're like, hey, we can be saved too because what were the Jews? What were these religious workspace Jews, you know, doing to this point?  This was, you know, the attitude of the Jews towards the Samaritans, towards all the Gentiles. It's just that they were low. They couldn't, you know, they were outside of God. Now the Gentiles here, hey, anybody that what in verse number 31, anybody in verse number 39, anybody that believed. They're like, this is great. This is great news. Of course, they think it's great. Anybody that hears this thinks it's great.  You tell somebody this and they understand it, they're going to be glad. All right, look at verse number 49. And the Word of the Lord was published throughout all the region. But here's the Jews. The Jews stirred up the devout and honorable women and the chief men of the city. What does that mean? That means they stirred up the people that were in charge. They went to the city councils. They went to the politicians and they got everybody all worked up. Honorable, you know, we can put that in quotes here. Like honorable meaning the people that were high up, that were officials, all these types of people, the people that were loved by the people. Look at it that way. And the chief men of the city and raised persecution against Paul and Barnabas and expelled them out of their coasts. But they shook off the dust of their feet, grabbed your map and came into Iconium. So Antioch was a tough town.  We see this happening in history. I mean, this happened. I mean, it's not the only time it happens. I mean, it's happening for thousands of years now. But we see it demonstrated here. And then they move on. They move back towards the east to Iconium. They shook the dust off their feet and came to Iconium. And the disciples were filled with joy and with the Holy Ghost. So all that to say this. Look at, there's one more thing I wanted to point out in Acts chapter 13. And I was going to reference, I was going to reference the Gentile. Let's see. So he look at verse number 39. There's a verse.  I'm losing my place here. But the point is, the point is, is there, there was a Calvinistic sounding verse here. But I was just going to bring you back to verse number 39, showing what it means to be, to be called by God, what it means to be ordained unto everlasting life. It says ordained to everlasting life. Where is that verse? Somebody help me out here. Verse 48. And when the Gentiles heard this, they were glad and glorified the word of the Lord, as many as were ordained to eternal life belief.   No, what do you have to do to be ordained to eternal life? Verse 39, just believe. That's it. It's believe. All right. So it's just a silly little thing there. Okay. So first of all, what I want to point out here is looking at the map, looking at the map, think about this, this trail that these guys went on. So we're, I tried to measure it with Google Maps. It's, it's over 600 miles. All right. That they have gone so far. It probably took over a year. I would guess that they were on this journey for over a year. But 600 plus miles, two, two journeys, just one way. I mean, this is, if you went to all trails, this would be like a 600, this would be a 1200 mile out and back trail. All right.  All right. So, you know, they got to go back to Perga. They got to go back to these port cities to get back to where they came from. All right. So this was a long journey. But here's the interesting thing. As you look at this map, this is just a side note.  Like, why this part?  Why this area? I don't know, the interesting thing about the Holy Land though, if you want to, I may, you hate to use the word Holy Land, but the interesting thing about the promise land is a better way of saying it, is that it's like a gateway to the whole world. If you just look at this map, it's a gateway. I mean, if you look at, if you look at Syria, where Antioch starts out, Syria is like a gateway to Asia. I mean, if you just head to the east, you're in all of Asia. You're out into China. You're into India. You're into all these different places. If you look at Turkey where they were at, like modern-day Turkey, Turkey goes up into the Balkans. It goes into Russia. You look at across, if they keep going west, into Greece. You look at Greece, which you can see on your map. And then you look at Italy. That's a gateway right into Europe, all those places. This area, this area, and then you look at South. Where did everybody run to South all the time? Everybody was, you know, scared in Jeremiah and everybody, you know, even Joseph, Joseph and Mary to get away from Herod. Where did they run? They ran South to Egypt. So there's a gateway to Africa, too. It's interesting about this part of the world. It's just like a, it's a gateway to almost the whole world. And I believe that that's not an accident on why God did that. But the point is this, if you look at what happened in this missionary journey, you look at where they started going. Here's what I'm trying to say. Look at Isaiah, go to, turn to Isaiah chapter 42. Christianity. We're trying to get Christianity to the world here. Paul was literally, I mean, look, he was literally sent out. Paul and Barnabas were literally sent out by the Holy Ghost. They were literally sent out by God himself. Okay? Christianity. Look at verse number seven of Isaiah chapter 52. Let's read this. It says, the Bible says, in verse number seven of Isaiah 52, how beautiful upon the mountains are the feet of Him that bringeth good tidings. That publisheth peace, that bringeth good tidings of good, that publisheth what? Publisheth salvation, that sayeth undesigned, thy God reigneth. In Romans 10 15 it said, and how shall they preach, except they be sent? As it is written, how beautiful are the feet of them that preach the gospel of peace and bring glad tidings of good things. Notice how it says in both Isaiah 52 and Romans chapter 15, or Romans chapter 10. It says, how beautiful are the feet. The point I'm trying to get at is, it's really interesting that when you look at how the gospel is spread. You look at how the gospel is spread in the book of Acts, and you look at how the gospel is spread today. Christianity is, it was, it is, and it always will be a ground game. It will be a ground game. I don't care. You can put all the airplanes. You can put all the trains. You can put all the automobiles that you want into it. But at the end of the day, it is always going to take a man or a woman walking around with a Bible and talking to people. Christianity, as demonstrated here, is always going to be a boots on the ground situation. And look at that. I mean, that's timeless. It is always going to be that way. It says it in Isaiah chapter 52, how beautiful are the feet of them that bring salvation. It talks about preachers. You know, look, even mission trips and all these things, it's going to come down.  We go off to different countries. It's going to take people walking around with a Bible. It's always going to come down to that. You know, we take for granted. You know, we read one chapter in the Bible. And we take for granted. That's why I passed out the maps. We take for granted the effort that went into this chapter, this missionary journey in the Bible, you know, is over a year. It was over 600 miles one way. Turn to 2nd Corinthians chapter 11. Turn to 2nd Corinthians chapter 11. And you know what? Quite frankly, they don't give you a lot of detail on what these men went through. As far as, you know, what they dealt with as far as the Jews persecuting them and kicking them out of these places, they don't really give you a lot of detail in Acts chapter 13 on when, on what they went through. But Paul kind of tells us. Paul kind of discusses a little bit in 2nd Corinthians chapter 11. You know, what, you know, some of the things that he went through. I mean, granted, this was the first missionary journey. But look at verse number 23 of 2nd Corinthians chapter 11. He gives us an idea of what this traveling was all about. And look what he says. He says, Are they ministers of Christ?  He says, I am more. In labor's more abundant in stripes above measure, in prison's more frequent in death's oft, meaning, threatening of death, meaning his life is in danger. Of the Jews, five times received I 40 stripes. Save one. Thrice I was beaten with rods. Once I was stoned. Thrice I suffered shipwreck. A night and day have I been in the deep. In journeyings often, we can see that. In perils of waters, we can see that here. In perils of robbers, people are trying to steal from him. They're trying to rob them. In perils by my own countrymen.  In perils by the heathen. He's talking about the Gentiles trying to kill him and beat him. In perils in the city. But then when we escape the city, we're fine. No, in perils in the wilderness too. In perils in the sea, in perils amongst false brethren. In weariness and painfulness in watching. They're sleeping with one eye open all the time. When they're out camping, they're always like, it did someone follow us and is trying to kill us now. In hunger and thirst, in fastings often, in cold and nakedness. Beside those things that are without that which cometh upon me daily. He's saying like, then he says, you know, just think about this. He's telling you about the ground game what it's like here. Okay, he's telling you about the feet on the ground preaching the gospel. And he says, oh, by the way, beside this, then I gotta worry about all the churches too. And guess what? The more travelings I go on, the more churches we plant, the more worry I have. You know, he says in care of all the churches. Now look, we don't know, we don't know why Mark left. We don't know why Mark left in verse number 13 or wherever that was when Mark departed. But here's what we do know. Here's what we do know. Here's what we do know with how the gospel is spread from Isaiah 52 with what we see as soul winners from what we see from this missionary journey. Here's what we do know. We don't know why Mark left, but we know one thing. Someone had to continue. It was important that someone continued and went through all these things in 2 Corinthians chapter 11. The gospel, and look, I'll give you my opinion on the argument that took place in Acts chapter 15 when we get there. But all I want to say tonight is the gospel and the kingdom of God. It depends on the polls. It depends on the people that continue. And we always have to remember that. Look, the way to build has always been the same. Look, I'm all about I'm all about creativity.  But here's the thing. The way to build the ministry is the ground game and that is going to take people that continue. That is going to take, you know, polls. Look, the people in Antioch, they wouldn't have heard what Paul had to say if he didn't go there. If he was like, hey, John or Mark, we're going with you. Yeah, sounds good. We'll go with you. Look, all I'm here to say tonight is like be thankful. Look, we are here. I'm telling you, we are here. I'm here. I'm here. I'm here personally because someone continued. You are here because someone continued. Look, I don't know who that was. If that was a pastor in your life. If that was a teacher in your life.  Someone in your life continued. Look, all these people, I'm thankful for the pastors, the teachers, the evangelists, the parents throughout history that continued because that's what it takes to move the kingdom of God forward. And look, anybody that's here, anybody that saved, they're saved. They heard the gospel because somebody didn't go back and they went to Antioch. They kept going through all that trouble. Through all that trouble. And look, here's the thing. I'm thankful. I'm thankful that Paul did continue because not everybody will. And look, I'll even say not everybody can. Maybe, maybe we don't, like I said, we don't know why John Mark left but maybe not everybody can take it. Maybe not everybody could go through what Paul and Barnabas had to go through. Maybe some people just aren't willing to go through that. I don't know why but look at your map right now. Look at your map. And here's what I want you to take away tonight. If you take away nothing else tonight, there's a reason that John Mark left at that point. Why? Why did he leave at that point? Because as soon as, look, I've been out in rough seas. I've been, I've been out in weather. And look, when you get back on land you're happy to be back on land when you're in, you're just like, Brother Trevor and I were out in a day like that. And when we got back to the dock you're happy to be back to the dock. But more than that, more than that, they were about to go further. They were about to go further. And John Mark, I don't know why, but he saw a way back. He saw a way back. And I just want to point out to everybody tonight, the devil is always going to be offering you a way back. Always. Maybe that's, that's a way back. Maybe that's a doubt that you have.  Look, that happens to everybody, first of all.  It just, look, that's, that's the devil. You know what that is? That's the devil. That's the devil seeing that you're in purga. And he's trying to offer you a way back when you get those doubts. You just have to remember, you know, where your anchor is, what the Word of God says. That's all you have to remember. The devil's, maybe it's a job. Maybe it's a job that's like, you get some amazing job, you know, three states away or somewhere else.  I mean, is this, is this Christian life really, what I should be doing? Look, the devil is going to offer you a way back. A way backwards is a better way of putting it. That, that's how he operates. I've seen it so many times with people that I love, with people that I know well, with people that I don't know that well. But I know, I've seen the pattern. I've seen the trend. I see the same trend with John Mark. I don't know what the reason was, but he had a way back at that point. He was on land. It was close. He didn't want to go further. The devil offered him a way back. And look, he went.  Because look, remember where you came from because you are only here and your kids are only here because somebody continued. Somebody continued and planted that church in Sacramento. Somebody continued and planted that church, you know, in Fresno. Somebody continued and planted that church in Arizona. Somebody continued 200 years ago and planted a church somewhere in the United States. Somebody planted a church that planted a church that planted a church that planted a church that sent out men of God. Then those men of God continued. And they continue with their families and their children continued. That's why we're here. So, the way back, the devil, that's how the devil can stop, stop this chain from going is by offering you a way back constantly. And you know what? Some people will take it, unfortunately. But just don't forget this. We are only here because people continued. Just like Paul continued and you know, John Mark was the one that went back. Alright? So just don't abandon. Don't just don't forget that the devil's going to constantly want you to abandon continuing forward in your Christian life. But everyone depends. Everyone depends on us going forward. If Paul and Barnabas didn't go forward, those people in Antioch, those people in Iconium, those people in Leistra, they wouldn't have heard anything. And think about it, the whole city. And then these churches get planted and Paul writes these great letters in the Bible. Think about this. That we study and we go through you know, all these epistles that Paul, he wrote to these churches that he planted because he continued. You're like, man, he's adding a lot of stress to himself. Yes, but I'm thankful that he continued and we should do the same. Let's bow our heads and have a word of prayer.


Hi everyone, Joe for jaspyscasebreaks.com coming at you with a team random that'll fill up series to pick your team five TJ were you watching the Instagram stream? Yeah, it was pretty cool, right? We sold 14 spots 13 of you are gonna get teams right and you'll be in that series to break the name on top That's gonna get three boxes of 2021 tops a series to baseball hobby edition shipped to you seal So you'll get them seal you can rip them open yourself if you want to you can you can sell them if you want to they're yours You can do whatever you want with them big. Thanks to this group of people right here for getting in on the action and Then we'll just match you up right here So we only randomize your names not the not not this list right here. So let's roll it. Let's randomize it Three and a six nine times for that list of names. Good luck one two three four five six seven eight and Ninth and final time Eric Jennings name on top Down to David Duffy So Eric congrats to you You're gonna get three boxes of series to baseball hobby edition shipped to you sealed Fred you get the Yankees and we're gonna put rooftops next to your names like that So, you know, it's from the from the same from this random Eric you also have my Dodgers with last fought mojo David with the Phillies Sean with the Cardinals Justin with the Rangers Justin B with the National Stephen K with the O's Cory with the Indians and the Brewers Travis with the A's Justin with the Royals Garrett with the Giants and David with the Rockies coming up in a separate video will be the break itself to ask these case rakes.com. Bye