Video: Prager U explains lemonade stand economics

The following video on business and economics explains the concept of profit margins using a model that many of us became familiar with as kids: the lemonade stand. By creating this simple business, kids learn basic lessons about marketing (i.e., making signs), pricing, and salesmanship. But they also learn the hard truth about profits, which is that they’re easy to come by when Mom pays for supplies, but pretty slim when running a real business.

By applying these lessons to real world companies, it’s easy to see how important every dollar of profit becomes, and how much harder life is for business owners when government regulations eat into already slim profit margins.

LU Staff

LU Staff

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