Sunday, July 25, 2010

Learning Economics on a Budget: Part VI

In my last update on my YouTube channel, I posted a series of videos on price discrimination. In an effort to get in touch with the intro of intromediate microeconomics, I decided to post a series of more basic videos on microeconomics. In this update, I give a guide to these new videos.

Let's start with a video on the intuition for why demand curves slope downward. This is pretty basic and intuitive, so if you want a more expansive treatment see the videos I recorded before on this topic (1, 2, 3, and 4).

In this video, I give an example that explains why sunk costs are sunk.

Here's a video that is an application of the equimarginal principle. This is an important application because it is the foundation for deriving a supply curve. Why do competitive firms produce where price equals marginal cost? Watch this video to find out.

The previous video was about how much the firm will produce, but this next one is about whether the firm will produce.

Because firms shut down when price is below the minimum of average variable cost, it is important to find this point on the graph (called the shutdown price). We may also be interested in the price at which the firm makes zero profit (P=Average Cost, called the break-even price). This video demonstrates how to find these points using only some economics and basic algebra.

This video demonstrates how to graph the various cost curves that we work with in studying how firms behave:

Finally, I conclude with a couple of videos where I work with demand and show how to compute elasticities.

I have some other playlists in progress on my channel, so check in if you want to learn some economics. As long as there are new topics to present, I will post new videos.