The Complete Micro Economics Course For Beginners

Explore microeconomics by linking local supply and demand to housing decisions, revealing how equilibrium balances production with consumer demand and why market choices vary.

Discover how utility guides daily choices as consumers maximize happiness, weighing marginal utility and price when choosing pizza, McDonald's, or other purchases, and how firms profit from these decisions.

explain how pricing constraints in health insurance illustrate market failures and government interventions that mandate affordable coverage, subsidies, and different national models shaping equilibrium.

Explore how consumers evaluate happiness through utility and distinguish between cardinal and ordinal utility. See how budgets and a basket of goods shape shopping choices at the store.

As an economic agent, you follow four rules for rational decision making in microeconomics. Non-satiation, completeness, transitivity, and reflectivity guide how you rank goods and form choices.

Examine why people prefer more of a bundle to less, note occasional non-rational choices under risk and constraints, and see how budget and impulses shape utility-maximizing purchases.

Explore how firms maximize profits by turning revenues into profits after costs, and examine types of business structures from sole proprietorships to private and public corporations, and their regulatory contexts.

Economists view firms as systems that transform inputs, land, labor, and capital (tangible and intangible) into outputs, with profit maximization tempered by taxation and individual incentives.

This lecture explains the agent problem where owners' profit goals clash with managers' incentives. It shows how compensation tied to performance—often via shares—aligns interests toward long-term profit and ownership.

Explore how marginal utility drives consumer choices by comparing tea and coffee, evaluating how utility changes with consumption, and analyzing bundles and shopping-cart substitutions to maximize value.

Explore how marginal utility changes with each additional unit, showing diminishing returns, the peak of total utility, and how budget considerations may shift decisions.

Explore how budget constraints shape consumer choices by maximizing utility within a fixed budget, considering prices, marginal utility, and the search for an optimal basket of goods.

Explore the numeraire concept, using a base of one to express relative costs, like tea versus coffee, to simplify pricing. Learn how this aids future budget allocation to maximize utility.

Identify two budgeting strategies: maximize utility with a fixed budget by allocating dollars, and minimize cost to achieve a set utility, using baskets of goods and marginal utility concepts.

Investigate how budget constraints and price changes affect consumer choices, budget lines, and utility maximization, using a $100 budget, job loss, and shifts in salmon, pizza, and coffee.

Explore how budget constraints shape decisions when prices change, detailing the substitution effect and income effect as you adjust the mix of movies and food to maximize utility.

Explore revealed preferences, where economists infer actual consumer choice from observed actions, noting the gap between stated desires and decisions driven by utility maximization.

Explore the Giffen good concept, where higher prices can raise demand, and examine how gasoline illustrates how prices affect utility and budget constraints.

Explore how accountants and economists view costs differently, comparing accounting profit with economists' focus on opportunity costs when an entrepreneur foregoes a higher salary to start a business.

Explore the full cost structure of a firm by analyzing total cost, fixed and variable costs, calculating average and marginal costs, and understanding how these drive output decisions.

Analyze how firms compare marginal cost to marginal revenue to decide output and pricing, producing until marginal cost equals marginal revenue for profit-maximizing decisions.

Explore how firms maximize profits when managers align with shareholders, achieving productive efficiency and allocating efficiency. Learn how short term adjustments contrast with long run investments to sustain profit maximization.

Understand how the goal of profit maximization depends on marginal cost versus marginal revenue, illustrated with fixed and variable costs in chair leg production.

Learn how industry-wide supply results from individual firms' marginal revenue and cost decisions. See how price affects total supply and why efficiency yields slim grocery margins.

Understand how individual demand curves form from budget and price levels, guided by marginal utility and utility maximization, and explore villain goods where higher prices boost demand.

Discover how supply and demand meet at the equilibrium price and quantity, where marginal revenue equals marginal cost, illustrated with a pizza pricing example.