11/13 Do Now11/13 Do Now  What is marginal product?  Extra output or change in total product caused by the addition of one more unit of variable input  AKA: How much more or less of a product there is when you add or subtract a factor of production.  Example: Adding one more worker (variable input) means ten more cars will be made (extra output or change in total product)

Agenda 1.Do Now 2.Vocabulary Review (45 min) 3.Matching Review (20 min) 4.Chapter 5, Section 3 Notes (20 m) 5.Marginal Chart (30 min)

Vocabulary ReviewVocabulary Review 1.Review section 1 and 2 on page In your notebook: Write down the vocabulary that you do not know well. 3.Go back into your notes and highlight or underline. 4. Choose two vocabulary words for the vocabulary review.

Vocabulary reviewVocabulary review  On a separate paper, for each word  Side 1: Vocabulary Word  Side 2: a.Rewrite formal definition b.Create student friendly definition c.Provide an example that uses the vocabulary  We will be using your student friendly definition to guess the vocabulary word.

Matching ReviewMatching Review  In your notebook: Page 134: Complete matching Write complete sentences.

Factors of ProductionFactors of Production  Land: Natural and Raw Resources  Labor: The workers  Capital: Resources to make goods.  Entrepreneurs: Business people When all factors of production are present production can take place. All Factors of Production have costs

Capital  Capital good: used to produce other goods and services 

 Input has costs.  There are different types of cost Cost

 Cost that businesses have regardless of output. Costs that do not change.  Overhead: Total Fixed Cost  Examples: Salaries of executives, taxes, building rentals, wear and tear on capital goods Fixed CostFixed Cost

Changes when output changes. Cost that affected by output Generally are associated with labor and raw materials. Example: hiring or firing workers, electricity costs, shipping costs. Variable CostsVariable Costs

 T he extra cost incurred when a business produces one additional unit of a product.  Per-unit increase in variable costs that stems from using additional factors of production. Marginal costMarginal cost

 Total Cost of production includes fixed and variable costs. Total CostTotal Cost

Capital  Capital good: used to produce other goods and services 

 Input has costs.  There are different types of cost Cost

 Cost that businesses have regardless of output. Costs that do not change.  Overhead: Total Fixed Cost  Examples: Salaries of executives, taxes, building rentals, wear and tear on capital goods Fixed CostFixed Cost

Changes when output changes. Cost that affected by output Generally are associated with labor and raw materials. Example: hiring or firing workers, electricity costs, shipping costs. Variable CostsVariable Costs

 T he extra cost incurred when a business produces one additional unit of a product.  Per-unit increase in variable costs that stems from using additional factors of production. Marginal costMarginal cost

 Total Cost of production includes fixed and variable costs. Total CostTotal Cost