Explore how to think about average fixed, variable, and marginal costs, and how to calculate them, using a firm's production function and costs in this video. Created by Sal Khan.

Walk through the solution to a free response question (FRQ) like the ones you may see on an AP Microeconomics exam. Topics include why price equals marginal revenue (P=MR) for a perfectly competitive firm, how to draw side-by-side market and firm graphs, and how to find several points of interest in the firm graph.

We deepen our understanding of a Nash Equilibrium by exploring Pareto optimality and more on Nash Equilibrium. Created by Sal Khan.

Learn how the Gini coefficient can be used to interpret income inequality in this video.

This video shows how to graph marginal cost, average variable cost, and average total cost. The relationship between these curves at important points is also explored.

This video expands on previous videos to explore how changes in production technology, changes in fixed costs, and changes in variable costs affect the marginal product of labor, marginal costs, average variable costs, average fixed costs, and average total cost.

Given that hiring more workers gives more revenue, but also has additional cost, what is the optimal amount of labor to hire? We begin thinking about this as well as briefly discuss another type of competition: monopsony labor markets. Created by Sal Khan.

Price controls reallocate surplus between buyers and sellers. In this video we explore how that happens with a price ceiling or a price floor.

Elasticities can be calculated for more than just price elasticity of supply or price elasticity of demand. For example, income elasticity of demand as a measure of how quantity demanded changes in response to income.

When there are increasing opportunity costs, the shape of the production possibilities curve (PPC) is bowed out. Learn more about how the shape of the PPC, which is sometimes also called the production possibilities frontier curve (PPF), depends on opportunity cost in this video. Created by Sal Khan.

We can graph how we value tradeoffs between two goods. Created by Sal Khan.

This is a course in industrial organization, the study of firms in markets. Industrial organization focuses on firm behavior in imperfectly competitive markets, which appear to be far more common than the perfectly competitive markets that were the focus of your basic microeconomics course. This field analyzes the acquisition and use of market power firms, strategic interactions among firms, and the role of government competition policy. We will approach this subject from both theoretical and applied perspectives.

The concepts of normal goods and inferior goods can be tricky, and the definitions can be somewhat subjective as well. In this video, we take a deeper look at these kinds of goods. Created by Sal Khan.

In this video, we take a slightly different approach to determining comparative advantage because we are given data in a slightly different way. Rather than knowing how much of two goods can be produced in a day, we know how much of a resources (in this case labor) is needed to produce one unit of a good.

These are new assessment tools where students can work to demonstrate their mastery of the concepts and component skills in the course. The practice versions help them develop mastery, in preparation for the quiz versions which serve as summative assessments.

The tools are highly randomized so that each student gets a different (but comparable) experience on each iteration. It discourages cheating because each student gets a different variation on each attempt - it's not possible to simply take a screenshot and share the answers with classmates.

This book would not be possible without funding from the Affordable Course Transformation @ Penn State University (ACT@PSU) grant. This includes invaluable assistance from the entire team including (but not limited to) Amanda Larson, Julie Lang, and Wade Shumaker.

In this video, we introduce the field of economics using quotes from the person that many consider to be the "father" of economics: Adam Smith. Topics include the definition of economics, microeconomics, and macroeconomics as a field and the role of assumptions in economic decisionmaking. Created by Sal Khan.

Just like goods and services, the factors of production are exchanged in markets. This video focuses on such market -- the market for labor. The supply of labor is based on people's willingness to tradeoff labor for leisure. The demand for labor is based on labor's marginal revenue product.

There are no pre-requisites to taking this module and in particular there is no assumption of any prior knowledge of economics. For those who have taken A-level economics or any other version of economics some of the module content will appear familiar to you. However, the methods of analysis and the approach to teaching will quite probably be very different to anything experienced before and thus it is very important that good lecture notes are made, essays are thoughtfully written and background reading is undertaken. If not, then a degree level of understanding of the material will not be achieved.