1. $35 30 25 20 0 Cost and Revenue 1 2 3 4 5 6 7 8 9 10 MC AVC ATC MR=D How much is the profit or loss? What is TR?What is TC? Where is the Shutdown Price? $300$250 $50 $22 22 Profit/Loss per unit? $5 1

2. Unit 3: The Costs of Production and Perfect Competition REVIEW ACTIVITY 2

3. Memorizing vs. Learning 123571113171923 3

4. 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. 4

5. 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. 5

6. Review Circles Odd numbers Even Numbers 6

7. 1.Explicit & Implicit Costs and Accounting & Economic Profit 7

8. 2. Calculating MP and AP. 8

9. 3. The Law of Diminishing Marginal Returns and the causes of the 3 Stages 9

10. 4. Graphing TP, MP, and AP and 3 Stages of Returns 10

11. 5. Examples of Fixed and Variable Costs and the difference between short-run and long-run. 11

12. 6. Calculating ATC, AVC, AFC, and MC 12

13. 7. Graphing ATC, AVC, AFC, and MC 13

14. 8. Shifting Costs Curves (Changing Variable and Fixed Costs) 14

15. 9. Why is MC “U” Shaped? (Nike swoosh) 15

16. 10. Explain Long-Run and Economies and Diseconomies of Scale 16

17. 11. Graphing Long-Run Average Cost Curves (Economies and Diseconomies of Scale) 17

18. 12. Characteristics of Perfect Competition with examples of each 18

19. 13. Explain Industry, Firm, Price Taker, TR, MR, Economic Profit/Loss, and Profit Max./Loss Min. Rule 19

20. 14. Calculating TR, TC, and profit/loss from a firm graph 20

21. 15. Explain/draw shut down point and how MC above AVC is the short-run supply curve 21

22. 16. Draw a firm making profit in the short run 22

23. 17. Draw a firm making a loss in the short run 23

24. 18. Draw firm and industry going from short-run profits to long-run equilibrium 24

25. 19. Draw firm and industry going from short-run losses to long-run equilibrium 25

26. 20. Explain Productive and Allocative Efficiency 26

27. 21. Draw a firm making a $40 profit selling 20 units at a price of $14.

28. 22. Draw a firm making a $60 loss selling 10 units at a price of $35.