Following on from our favourite videos from the Rockonomics student competition, here are some picks from an Advanced Placement course in Economics in the US, where students have worked economics lyrics into popular songs.
Monopoly is the Way to Go
If there’s only one seller of a product and new firms can’t enter the market, competition can’t drive prices down, as explained in this video after some nice black-and-white scene setting. Being a monopoly is nice work if you can get it.
Money quote: “Monopolistic competition, oligopolies / neither of them are efficient allocatively”
Looking at the same topic from a different angle, this is so well-produced it looks like a proper music video.
Money quote: “Maybe I’ll just advertise / Where MR meets MC we profit maximise”
It wasn’t me
Most of the videos here are about monopolies: this one is about firms colluding to form an oligopoly. This video should get an award for the most surprising place to draw a cost curve diagram.
Money quote: “Feds came and they caught me red-handed / Colluding with the firm next door / Picture this: we were both profit-making / Selling below the price floor.”
Nuthin’ But A G Thang
Back to the topic of monopoly, and exactly why it’s bad. Let the “Straight Outta U-ville” massive explain and entertain.
Money quote: “From a rival’s perspective / Blocked entry, no close subs, non-price comp are effective”
Do you ever think about pizza? We all do, but do you ever think about how pizza production involves fixed and variable costs whose sum you have to keep the price above in order to be profitable?
Money quote: “The price went down and my Q went right / My business was boomin’ like dynamite.”
The chorus of this video features what looks like the most fun car trip ever.
Money quote: “Yeah I know consumer surplus is down / Producer surplus is the highest around”
Shoot for the money
Worth watching for the hilarious Deadpool tribute! Lots of these videos include cost curve diagrams, but a cost curve diagram in fire takes cost analysis to a new level.
Money quote: “Over-price it bang! / Under-produce that thang. / I wanna know / How AVC hangs”
A song from 1976 brought into 2016 and into the world of imperfect competition. Contains scenes of explicit hairstyling and ukelele playing.
Money quote: “Socially optimal’s not our style / Quantity’s low and the price is high.”