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: