When prices fall below a certain point, why does that cause a shut down? Using the concept of fixed costs and losses, and by drawing on a sample graph, watch as this instructor explains the shut down rule of economics.

Additional Tags

cost curve, fixed cost, social studies

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Instructional Ideas

• Include on class website for learners to use as review
• Flip your classroom and discuss this concept in detail in class after learners have previewed the video at home
• Use as a model for your own instruction

Classroom Considerations

• Learners need foundational knowledge of cost curves before beginning video
• Video moves at fast pace, so may be best used as review

• This video is hosted on YouTube

Common Core

RH.11-12.1 RH.11-12.2 RH.11-12.4