Khan Academy
Cupcake Economics 3, Inflation, Finance and Capital Markets
This video continues to use the business model of a cupcake factory and explains how prices are driven.
Khan Academy
ROA Discussion 1, Stocks and Bonds, Finance and Capital Markets
Introduce young economists to the concept of return on assets with this clip, which begins with an overview of various theories on calculating ROA. Sal writes out four formulas and explains why he uses the last one: EBIT divided by...
Khan Academy
Khan Academy: Cupcake Economics 2
This video offers more analysis of the cupcake business. [11:38]
Khan Academy
Khan Academy: Cupcake Economics 3
This video explains why prices decrease when utilization is low and prices increase when utilization is high using a fictitious cupcake factory. [12:58]