Chapters 4-6 Test is NEXT TUESDAY ECONOMICS: September 26 See paper entitled Elasticity Review (HO) Warm-up: review elasticity of D and elasticity of S (note what happens on graphs when P changes) (HO) Learning Target In order to understand the theory of production, I will analyze production schedules and the production function. I will know I have it when I can: (1) draw an accurately labeled production function; (2) differentiate between fixed and variable costs; and (3) calculate a breakeven point. Production Schedule and Function --analyzing the production schedule --the production function: increasing, diminishing, & negative returns --worker productivity --adding costs, revenues, and profits to the production schedule -fixed (overhead) costs vs. variable costs -breakeven analysis Closure: Will the breakeven point of an e-commerce business be higher or lower than a typical “brick & mortar” store? Why? Assignment: read Ch. 6, Lessons 1 & 2 Chapters 4-6 Test is NEXT TUESDAY