1. Unit 3: The Costs of Production and Perfect Competition REVIEW ACTIVITY 1

2. Memorizing vs. Learning 123571113171923 2

3. 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. 3

4. Review Circles Odd numbers Even Numbers 4

5. 1.Explicit & Implicit Costs and Accounting & Economic Profit 5

6. 2. Calculating MP and AP. 6

7. 3. The Law of Diminishing Marginal Returns and the causes of the 3 Stages 7

8. 4. Graphing TP, MP, and AP and 3 Stages of Returns 8

9. 5. Examples of Fixed and Variable Costs and the difference between short-run and long-run. 9

10. 6. Calculating ATC, AVC, AFC, and MC 10

11. 7. Graphing ATC, AVC, AFC, and MC 11

12. 8. Shifting Costs Curves (Changing Variable and Fixed Costs) 12

13. 9. Why is MC “U” Shaped? 13

14. 10. Explain Long-Run and Economies and Diseconomies of Scale 14

15. 11. Graphing Long-Run Average Cost Curves (Economies and Diseconomies of Scale) 15

16. 12. Characteristics of Perfect Competition with examples of each 16

17. 13. Explain Industry, Firm, Price Taker, TR, MR, Economic Profit/Loss, and Profit Max./Loss Min. Rule 17

18. 14. Calculating TR, TC, and profit from a firm graph 18

19. 15. Explain/draw shut down point and short-run supply curve 19

20. 16. Drawing a firm making profit in the short run 20

21. 17. Drawing a firm making a loss in the short run 21

22. 18. Draw firm and industry going from short-run profits to long-run equilibrium 22

23. 19. Draw firm and industry going from short-run losses to long-run equilibrium 23

24. 20. Explain Productive and Allocative Efficiency 24