1. Unit 3: The Costs of Production and Perfect Competition 1

2. Memorizing vs. Learning 123571113171923 2

3. Activity: Review Circles You will be given one key concept to focus on. You must understand it well enough to quiz and help others remember it. You must able to answer people’s questions and give clear examples. DON’T TEACH!!!!!!!!!! QUIZ your partners. Make them work to remember the concept. 3

4. Review Circles Odd numbers Even Numbers 4

5. 1.Explicit & Implicit Costs and Accounting & Economic Profit 2.Calculating MP and AP and explaining relationship. 3.The Law of Dim. Marg. Returns and causes of 3 Stages 4.Graphing TP, MP, and AP and 3 Stages of Returns 5.Examples between Fixed and Variable and difference between short-run and long-run. 6.Calculating ATC, AVC, AFC, and MC 7.Graphing ATC, AVC, AFC, and MC (Explain relationship) 8.Shifting Costs Curves (Changing Variable and Fixed Costs) 9.Why is MC “U” Shaped? 10.Explain Long-Run and Economies and Diseconomies of Scale 11.Graphing Long-Run Average Cost Curves (Economies and Diseconomies of Scale) 12.Characteristics of Perfect Competition with examples of each 13.Explain Industry, Firm, Price Taker, TR, MR, Profit, and Profit Max. Rule 14.Calculating TR, TC, and Profit from a firm graph 15.Calculating TR, TC, and Profit from a firm graph 16.Shut Down Point and short-run supply curve 17.Drawing a firm making profit 18.Drawing a firm making a loss 19.Going from short-run profits to long-run equilibrium (Firm and Industry) 20.Going from short-run profits to long-run equilibrium (Firm and Industry) 21.Going from short-run losses to long-run equilibrium (Firm and Industry) 22.Going from short-run losses to long-run equilibrium (Firm and Industry) 23.Productive and Allocative Efficiency 24.Review Questions 1 and 2 25.Review Questions 3 and 4 26.Review Questions 5 and 6 27.Review Questions 7 and 8 28.Review Questions 9 and 10 29.Review Questions 11 and 12 30.Review Questions 13 and 14 31.Review Questions 15 (Using a Graph to explain) 32.Exam FRQ#1 Bi and Bii (Draw Graphs) 33.Exam FRQ#1 C (Draw Graphs) 34.Exam FRQ #2 A, B, and C 35.Exam FRQ #2 C, D, and E 36.Drawing a firm making profit 37.Drawing a firm making a loss 5

6. 1.Explicit & Implicit Costs and Accounting & Economic Profit 2.Calculating MP and AP. 3.The Law of Dim. Marg. Returns and causes of 3 Stages 4.Graphing TP, MP, and AP and 3 Stages of Returns 5.Examples between Fixed and Variable and difference between short-run and long-run. 6.Calculating ATC, AVC, AFC, and MC 7.Graphing ATC, AVC, AFC, and MC 8.Shifting Costs Curves (Changing Variable and Fixed Costs) 9.Why is MC “U” Shaped? 10.Explain Long-Run and Economies and Diseconomies of Scale 11.Graphing Long-Run Average Cost Curves (Economies and Diseconomies of Scale) 12.Characteristics of Perfect Competition with examples of each 13.Explain Industry, Firm, Price Taker, TR, MR, Profit, and Profit Max. Rule 14.Calculating TR, TC, and Profit from a firm graph 15.Calculating TR, TC, and Profit from a firm graph 16.Shut Down Point and short-run supply curve 17.Drawing a firm making profit 18.Drawing a firm making a loss 19.Going from short-run profits to long-run equilibrium (Firm and Industry) 20.Going from short-run profits to long-run equilibrium (Firm and Industry) 21.Going from short-run losses to long-run equilibrium (Firm and Industry) 22.Going from short-run losses to long-run equilibrium (Firm and Industry) 23.Productive and Allocative Efficiency 24.Review Questions 1 and 2 (WHY?) 25.Review Questions 3 and 4 (WHY?) 26.Review Questions 5 and 6 (WHY?) 27.Review Questions 7 and 8 (WHY?) 28.Review Questions 9 and 10 29.Review Questions 11 and 12 30.Review Questions 13 and 14 31.Review Questions 15 (Using a Graph to explain) 32.Exam FRQ#1 Bi and Bii (Draw Graphs) 33.Exam FRQ#1 C (Draw Graphs) 34.Exam FRQ #2 A, B, and C 35.Exam FRQ #2 C, D, and E 36.Drawing a firm making profit 37.Drawing a firm making a loss 6

7. 1.Explicit & Implicit Costs and Accounting & Economic Profit 2.Calculating MP and AP. 3.The Law of Dim. Marg. Returns and causes of 3 Stages 4.Graphing TP, MP, and AP and 3 Stages of Returns 5.Examples between Fixed and Variable and difference between short-run and long-run. 6.Calculating ATC, AVC, AFC, and MC 7.Graphing ATC, AVC, AFC, and MC 8.Drawing a firm making a loss 9.Shifting Costs Curves (Changing Variable and Fixed Costs) 10.Why is MC “U” Shaped? 11.Explain Long-Run and Economies and Diseconomies of Scale 12.Graphing Long-Run Average Cost Curves (Economies and Diseconomies of Scale) 13.Characteristics of Perfect Competition with examples of each 14.Explain Industry, Firm, Price Taker, TR, MR, Profit, and Profit Max. Rule 15.Calculating TR, TC, and Profit from a firm graph 16.Calculating TR, TC, and Profit from a firm graph 17.Shut Down Point and short-run supply curve 18.Drawing a firm making profit 19.Going from short-run profits to long-run equilibrium (Firm and Industry) 20.Going from short-run profits to long-run equilibrium (Firm and Industry) 21.Going from short-run losses to long-run equilibrium (Firm and Industry) 22.Going from short-run losses to long-run equilibrium (Firm and Industry) 23.Productive and Allocative Efficiency 24.Review Questions 1 and 2 25.Review Questions 3 and 4 26.Review Questions 5 and 6 27.Review Questions 7 and 8 28.Review Questions 9 and 10 (WHY?) 29.Review Questions 11 and 12 (WHY?) 30.Review Questions 13 and 14 (WHY?) 31.Review Questions 15 (Using a Graph to explain) 32.Exam FRQ#1 Bi and Bii (Draw Graphs) 33.Exam FRQ#1 C (Draw Graphs) 34.Exam FRQ #2 A, B, and C 35.Exam FRQ #2 C, D, and E 36.Drawing a firm making a $40 profit selling 20 units at a price of $14. 37.Drawing a firm making a $60 loss selling 10 units at a price of $35. 7

8. Unit III Review Questions –A –C –E –B –D –B –D –C –D –A –D 8