Economists think about costs differently. Economists also account for the best alternative use of resources – opportunity cost. In this video, we bring in the math of opportunity cost.
Type: Supplemental Explainers
Everyone has limited resources, when you choose to do one thing you give up something else. In this video we introduce and break down the production possibilities curve, which shows the relationship between the maximum production of one good for a given level of production of another good.
How do economists deal with negative externalities? Negative externalities impose a cost that no ones is paying for, so economists must consider this cost imposed on society. In this video, we learn how to find the efficient equilibrium in the presence of negative externalities.
In this video, we break down what is comparative advantage, and how to figure out who has the comparative advantage.
In this video we introduce the math related to consumer surplus. Here, we walk through how to actually calculate consumer surplus.
In this video we add in some math. Here, we walk through the math behind a key part of the Buyer’s Problem, the budget constraint.
Video coming soon! In this video, we carefully go over the economic theories of discrimination to complement the intuition economists use to think about discrimination.
This video dives into the prisoners’ dilemma formally. We’ll introduce the key economic terms to think through the prisoners’ dilemma.
In this video we take your straight to the mechanics of calculating the price elasticity of demand, while maintaining the economic intuition.
In this video we get into some of the mechanics behind the supply and demand model. We explain what shifts a supply curve, and what happens to the competitive equilibrium price and quantity.