I. Bellwork: https://www.youtube.com/watch?v=ZUFJJqO-ZMI
- How is the price of a product set for a perfectly competitive firm?
- How would you describe the demand curve for a perfectly competitive market? Is it inelastic, elastic, perfectly inelastic or perfectly elastic?
- Why is the price of a product in this market structure set the way it is? What causes that?
- In long-run equilibrium, what holds true for perfectly competitive firms regarding TR and TC?
- What kind of profit do perfectly competitive firms realize in the long run?
- Determine the profit-maximizing quantity of output for a price taking firm
- Assess whether or not a competitive firm is profitable
- Interpret economic models to form decisions on costs, profit, and production
III. Discussion: Perfect Competition 588-592
- Examine Table 58.1 p589
- Price Taker – what does that mean???
- MR = Price under Perfect Competition
- Price-taking firm’s optimal output rule p 589
- Copy Figure 58.1 p591
- Accounting Profit v Economic Profit
TR/Q =Average Total revenue & market price (P)
TC/Q = Average total cost (ATC)
TR=TC (Break-even) or P=ATC
TR>TC (Profit) or P>ATC p595 graph
TR<TC (Loss) or P<ATC p595 graph
See 3.5 PPT on iLearn – start on slide 12
- Page 592 1-2 & Page 593 1-5
- 3.5 Perfect Competition Practice
Fake check scam on the rise and targeting young people
- Explain how the scam works.
- Explain what you should do if someone you don’t know offers you a check in exchange for cash?
- Analyze and record financial transactions of a check register
- Apply the proper steps to write checks and record them on a check register
- Explain the process of writing checks and recording checking transactions on a register
- Booklet: Making the Right Money Moves
- Check Register on Google Classroom
A. Economics Skills Lab Supply Questions & Answers
- Identify the natural resource that is the focus of the article.
- What is impacting the supply of this resource?
- Based upon your previous answer, what determinant of supply would this be classified as?
- Construct a supply graph to illustrate this change in supply and explain what is happening.
- Evaluate various explanations for actions or events and determine which explanation best accords with textual evidence.
- Review and discuss changes in supply and the determinants of supply.
- Develop, orally share, and write a sample goal plan for class focusing on a course of action to attain the goal through the use of self reflection, thinking maps, and group discussion.
- Collect and provide documentation supporting Chapter 5 learning objectives.
IV. Review for Chapter 5 Test Tomorrow
I. Bellwork: Figure 5.6 Page 134 Questions & Answers
- At what number of products is the break-even point in on the table achieved? Estimate a range.
- At what number of workers is the profit-maximizing level of output achieved on the table and explain why this choice is correct.
- Explain the advantages e-commerce stores have over traditional stores? (Page 135)
- Construct and analyze the production function and other decision making models which are used to make business decisions.
- Determine the meaning and functions of words and phrases used to make economic decisions
- Create a hypothetical business and differentiate between variable and fixed costs incurred in the operation of the business.
IV. Chapter 5 test on Wednesday