This video discusses the differences in a graph of marginal cost and marginal revenue for an imperfectly competitive firm compared to a perfectly competitive firm.
People sometimes assume that a firm that isn't earning a profit should immediately shut down. In this video, we explore why that might not actually be a very good idea, and why it might be rational to produce at a loss. Created by Sal Khan.
If you have $5 to spend on two goods, how do you decide to spend it? In this video, we use the concepts of marginal utility and marginal benefit to decide how best to allocate a budget. Created by Sal Khan.
In this video, walk through the solution to a question on the 2012 AP Microeconomics exam applying the concepts of marginal utility and utility maximization.
Market versus book value of equity. Created by Sal Khan.
The market demand for a good describes the quantity demanded at every given price for the entire market. Remember that the entire market is made up of individual buyers with their own demand curves. This means that the market demand is the sum of all of the individual buyer's demand curve. In this video, you can visualize why this is true.
An equilibrium exists in a market when there is no pressure for the market price to change. Learn about what it means for a market equilibrium to exist, and how to identify a market equilibrium in a market model. Created by Sal Khan.
In order for markets to function effectively, property rights must be clear. In this video, we explore the idea of property rights, and why they matter in markets and how they affect individual incentives. We describe some of the conditions that are necessary for a properly and efficiently operating market to exist, including how exclusivity, enforceability, and transferability of property rights are essential for a properly functioning market.
Market value of assets. Created by Sal Khan.
An explanation of the Marriage penalty. Created by Sal Khan.
A clarification on married taxes.
Going through the mechanics of how a Thai financial institution can lose their shirt when their currency devalues. Created by Sal Khan.
Generalizing what we did in the last video with more math. Created by Sal Khan.
The Maxwell-Boltzmann distribution describes the distribution of speeds among the particles in a sample of gas at a given temperature. The distribution is often represented graphically, with particle speed on the x-axis and relative number of particles on the y-axis. Created by Sal Khan.
An overview of the Mayan civilization as well as the great city of Teotihuacan.
The landmark Supreme Court case that established strong implied powers for the federal government.
Media as a linkage institution. Incentives for media to cater to ideologies of target audience.
How changes in Earth's rotation can effect Earth's seasons and climate. Created by Sal Khan.
Minimum efficient scale (MES) is the quantity at which a firm’s long run average total cost curve stops falling, and the size of a firm’s MES relative to the size of the market has a strong influence on market structure— large MES is associated with more concentrated markets.
Another type of price control is a price floor, which is a minimum legal price. A real world example of a price floor is a minimum wage. In this video we explore how a minimum wage might affect a perfectly competitive labor market. Created by Sal Khan.