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.

This half-semester course provides an introduction to microeconomic theory designed to meet the needs of students in an economics Ph.D. program. Some parts of the course are designed to teach material that all graduate students should know. Others are used to introduce methodologies. Students should be comfortable with multivariable calculus, linear algebra, and basic real analysis.

This course offers an introduction to noncooperative game theory. The course is intended both for graduate students who wish to develop a solid background in game theory in order to pursue research in the applied fields of economics and related disciplines, and for students wishing to specialize is economic theory. While the course is designed for graduate students in economics, it is open to all students who have taken and passed 14.121. The recommended primary text for the course is Drew Fudenberg and Jean Tirole's text, Game Theory. The text covers all the material in the course and much more, but has less in the way of intuition and examples than some students would like. For this reason, students might alternately wish to use Robert Gibbons' Game Theory for Applied Economists as their primary reference. Gibbons' book contains more readable discussions of the material and a lot of nice examples, but omits a few of the topics we'll cover. The course will be graded on the basis of five problem sets and a three hour final exam. In order to learn the material it is absolutely essential to do the problem sets. The problem sets will count for approximately one-fourth of the course grade.

This is a half-semester course which covers the topics in Microeconomic Theory that everybody with a Ph.D. from MIT Economics Department should know but that have not yet been covered in the Micro sequence. Hence, it covers several unrelated topics. The topics come from three general areas: Decision Theory, Game Theory, and Behaviorla Economics.  I will try my best to put them in a coherent narrative, but there will be inherent jumps from topic to topic.

This course is taught using an open education resource book published by Rice University's Openstax program and is offered for free via the generous donations of the following benefactors: the William & Flora Hewlett Foundation, Bill & Melinda Gates Foundation, 20 Million Minds Foundation, Maxfield Foundation, Open Society Foundations, and Rice University. You have several choices in using this book. You can either view it online or download a pdf version for free or if you wish you can purchase a low-cost printed and bound version.
To get started in the course click on this link for the course orientation in PowerPoint format if you haven't already done so before the semester began. Econ 2302 Orientation.pptxDownload Econ 2302 Orientation.pptx
Alternatively, you can view and listen to the orientation in video format provided in the modules tab under "Getting Started" or click here now. Next, read the course syllabus which is available right under the "Home" page tab at the upper left-had corner of the screen. When you are finished reading it, click on the Modules tab on the left and start viewing the videos on The Psychology of Learning.
To learn more about OpenStack and why it is being used in this course play the 3-minute video below. This video is not closed captioned, however, you can download the transcript here.

Microeconomics will ground you in - surprise - basic microeconomics-how markets function, how to think about allocating scarce resources among competing uses, what profit maximizing behavior means in industries with different numbers of competitors, how technology and trade reshapes the opportunities people face, and so on. We will apply economic ideas to understand current economic problems, including the housing bubble, the current unemployment situation (particularly for high school gradutes), how Google makes its money and why healthcare costs are rising so fast.

Applications ahead of Theory
We present all the theory that is standard in books on the principles of economics. But by beginning with applications, we also show students why this theory is needed.

We take the kind of material that other authors put in “applications boxes” and place it at the heart of our book. Each chapter is built around a particular business or policy application, such as (for microeconomics) minimum wages, stock exchanges, and auctions, and (for macroeconomics), social security, globalization, and the wealth and poverty of nations.

Why take this approach? Traditional courses focus too much on abstract theory relative to the interests and capabilities of the average undergraduate. Students are rarely engaged, and the formal theory is never integrated into the way students think about economic issues. We provide students with a vehicle to understand the structure of economics, and we train them how to use this structure.

This web-based open textbook and course for Microeconomics for Business was created under a Round Eight ALG Textbook Transformation Grant. The text is a remix including newly-created textbook chapters and chapters from OpenStax Principles of Microeconomics.

Original chapters are also available for download in the repository.

Topics include:

Introduction to Economics
Demand and Supply in Competitive Markets
Elasticity of Demand and Supply
Markets and Government
Consumer Choice
Production, Costs, and Profit
Firms' Decisions under Perfect Competition
Monopoly, Rent Seeking, and Antitrust Policies
Firms' Decisions under Monopolistic Competition
Market Concentration, Oligopoly, and Firms' Strategic Interaction

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.

Learn about the key differences between the two extremes of competition: monopolies and perfect competition.

In this video we explore why it is hard for a monopolistic competitor to make economic profit in the long run. Created by Sal Khan.

A monopolist might be pretty happy about its extraordinary profits, but these come at a cost for society. In this video we explore the welfare implications of a monopoly market. Created by Sal Khan.

A monopolist's marginal revenue curve is always less than its demand curve. We explore why using a numerical example in this video. Created by Sal Khan.

In this video we explore how a monopolist decides on the best quantity to produce and the price to charge for that quantity. Created by Sal Khan.

Price discrimination is charging each consumer their entire willingness to pay. What if a monopolist can charge each buyer their entire willingness to pay? Learn about the effect of perfect price discrimination on output and deadweight loss in this video.