3.01 Production Costs Objectives:

What is the difference between accounting and economic profit?

What are the costs of production?

What is the difference between the different costs of production?

What is the difference between marginal, total and average revenue?

Vocabulary:

Term Definition How will I remember?

Accounting profit

Average fixed cost

Average revenue

Average variable cost

Economic profit

Explicit cost

Fixed cost

Implicit cost

Long run

Short run

Total cost

Total revenue

Variable cost

Graphs and Notes:

3.02 Graphing Cost Curves Objectives:

What cost curves do suppliers track to help them make business decisions?

How do you interpret the best combination of labor, land and capital for a producer?

How do you know when efficiency in production is reached?

Why is the total product curve the most important variable in production?

Vocabulary:

Term Definition How will I remember?

Average product

Diminishing marginal returns

Diseconomies of scale

Economies of scale

Inflection

Marginal cost

Marginal product

Negative returns

Output

Total cost

Total fixed cost

Total product curve

Graphs and other notes:

3.03 Perfect Competition Objectives:

What are the characteristics of a perfectly competitive industry?

What is normal profit?

Explain profit maximization

What is the difference between long and short run profit?

What are the efficacies and inefficiencies of a purely competitive market?

Vocabulary:

Term Definition How will I remember?

Perfect competition

Perfectly elastic demand

Graphs and notes:

3.04 Perfect Competition Model: Short Run Equilibrium Objectives:

Analyze the perfect competition model

How do perfect competitors make decisions in the short run?

Vocabulary:

Term Definition How will I remember?

Excess economic profits

Marginal cost

Marginal revenue

Minimum loss

Normal profits

Shut down point

Graphs and notes:

3.05 Perfect Competition Model: Long Run Equilibrium Objectives:

How do perfect competitors make decisions in the long run?

Why is the perfectly competitive firm inefficient?’

Vocabulary:

Term Definition How will I remember

Allocative efficiency

Excess economic profits

Minimum losses

Normal profits

Productive efficiency

Graphs and notes:

3.06 Inefficiency of the Monopoly Objectives:

What are the characteristics of a monopoly?

How does a monopolist determine price and output?

Why is the monopoly outcome inefficient?

Vocabulary:

Term Definition How will I remember?

Entry barrier

Federal Communications Commission

Herfindahi-Hirschman index

Monopoly

Monopoly pricing

Monopsony

Graphs and Notes:

3.07 Competition vs. Monopoly (Skip this dba until the end of unit)

Objectives:

How are perfectly competitive and monopoly different?

What are the characteristics of a monopsony?

Vocabulary:

Graphs and Notes:

3.08 Regulating Monopolies Objectives:

How are monopolies regulated?

Are regulations effective?

What are the characteristics of a natural monopoly?

Vocabulary:

Term Definition How will I remember?

Average total cost pricing

Average variable cost pricing

Fair-return price

Marginal cost pricing

Price discriminating monopolist

Public utility

Socially optimal price

Graphs and notes:

3.09 Consumer and Producer Surplus Objectives:

Compare and contrast perfect competition and monopoly models.

Vocabulary:

Term Perfect Completion Monopoly

Consumer surplus

Deadweight loss

Efficiency

Producer surplus

Graphs and Notes:

3.10 Monopolistic Competition Objectives:

What are the characteristics of the monopolistic competition model?

How does product differentiation work?

What is the role of advertising and why is it important?

How do firms make decision in the long and short run?

How do firms use excess capacity and inefficiency in decision making?

Vocabulary:

Term Definition How will I remember?

Brand loyalty

Excess capacity

Implicit contract

Monopolistic competition

Product differentiation

Graphs and notes:

3.11 Oligopoly Objectives:

What is the oligopoly model?

Analyze the oligopoly model

What is:

o Interdependence

o Price collusion

o Cartel behavior

What are the different types of mergers?

Compare and contrast the different types of mergers.

How does the government test or determine if they will allow a merger?

What is game theory and strategic behavior?

Vocabulary:

Term Definition How will I remember?

Cartel

Conglomerate merger

Dominant strategy

Failing firm

Game theory

Horizontal merger

Merger

Nash equilibrium

Oligopoly

Synergy

Vertical integration

Vertical merger

Graphs and notes: