In this video, we compare and contrast the long run outcomes for monopolistic competition, monopolies, and perfect competition.

A firm in a perfectly competitive market might be able to earn economic profit in the short run, but not in the long run. Learn about the process that brings a firm to normal economic profits in this video.

A demand shock has a short-run effect on an output and unemployment, but in the long run only the price level will be impacted. If there is an increase in aggregate demand, the price level will go up. Once wages have adjusted to that inflation in the long run, SRAS decreases and returns the economy to full employment output. Shocks do not cause economic growth, only changes in full employment output cause economic growth.

A constant cost industry is an industry where each firm's costs aren't impacted by the entry or exit of new firms. Learn about the difference between the short run market supply curve and the long run market supply curve for perfectly competitive firms in constant cost industries in this video.

In some industries, the number of firms in the market has an impact on the costs that firms face. For example, when firms have to compete with each other over resources, firms' costs increase as more firms enter the market. But in other industries, more firms actually lower costs for firms. Learn about the implications of each of these situations on the long-run supply curve in an industry.

Understanding the long term supply curve in terms of economic profit. Created by Sal Khan.

Leveraging a diagram from the New York Times to look at trends in inflation adjusted income since 1980. Discussion of possible levers that could be driving the trends. Created by Sal Khan.

The expenditure and tax multipliers depend on how much people spend out of an additional dollar of income, which is called the marginal propensity to consume (MPC). In this video, explore the intuition behind the MPC and how to use the MPC to calculate the expenditure multiplier. Created by Sal Khan.

In this video we calculate the costs of producing a good, including fixed costs, variable costs, marginal cost, average variable cost, average fixed cost, and average total cost.

Given the cost of producing a good, what is the best quantity to produce? In this video we explore one of the most fundamental rules in microeconomics: a rational producer produces the quantity where marginal revenue equals marginal costs. Created by Sal Khan.

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.

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.

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.

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.