World Public Library

Capacity utilization and inflation : Economics of a Cupcake Factory

Sal Khan

Abstract

This tutorial starts with a very micro view of when firms decide to raise (or lower prices). It then jumps back to the macro view to discuss how capacity utilization can impact prices. Source: Khan Academy (www.khanacademy.org), used under the Creative Commons Attribution-NonCommercial-ShareAlike (CC BY-NC-SA) license. All Khan Academy content is available for free at www.khanacademy.org. Khan Academy does not endorse the World Public Library.

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