How we make pencils
Get those pencils ready to pick out a huge amount of microeconomics in this brilliant 4 minute clip from Faber-Castell which produces 2.3 billion pencils a year and has been in business for over two hundred and fifty years.
This is such a rich video for classroom use - what is the marginal cost of a pencil? What is the importance of human capital to the value added process? What internal economies of scale might a business such as Faber-Castell utilise? How significant are family businesses to the wider health of the German economy?