Even though it’s meant to be a segue into a discussion on inflation, the half-hour set of videos I’m sharing here relates to the four market structures (perfect competition, monopoly, monopolistic competition, and oligopoly) as well as how revenue, prices, and profits inter-relate. If you can read between the lines a little, you’ll also gain more insight on the costs of production.
Salman “Sal” Khan, 33, of Khanacademy.org studied Math and Engineering at MIT, then got his MBA from Harvard. At one time, he was a portfolio manager of Khan Capital and a research analyst for two other companies. Boil him down to his work, and he’s the quintessential number cruncher.
But that’s not it. In late 2004, he began giving long-distance math lessons to his niece using the Internet and a phone line. Soon, more parents started to ask Khan to teach their kids. It snowballed, and he eventually decided to start uploading his lessons to YouTube. Now, he’s doing pretty well. He’s made over 1,100 free videos with lessons on topics that range from biology to the SAT Math section, and has garnered over 8 million video views.
To help him get more views and to help you understand economics better, I’m sharing part one out of a three-part lesson he posted last March. To econ nerds, this classic trilogy might be a compelling plot worthy of an Oscar. Our story begins with the monopolist provider of addictive cupcakes (they have nicotine in them) named Salman. In a stunning twist, his son Imran betrays his father and enters the market. That’s all I can say, but move your cursor over this text for a spoiler. Twists and turns in this complex saga bring tough guys like Ben Stein close to tears.
The first video is below. I understand that part one looks a bit difficult to read, but at least it’s not complicated. To see parts two and three, click here and here.