AP Economics – 10/29/18
I. Bellwork
- Page 538 Free Response #2 a-d (show your work)
II. Objectives
- Perform Marginal Analysis
- Determine the profit maximizing level of output using the optimal output rule
- Analyze, interpret and construct economic models to solve problems and make decisions
III. Discussion: Profit Maximization pgs. 539-542
- Total Revenue = P x Q
- Profit = TR – TC
- Marginal Revenue = Chg in Total Revenue/Chg Quantity
- Marginal Cost= Chg in Total Cost /Chg Quantity
- Profit Maximizing Quantity of Output occurs when MC = MR
Micro Unit 3, Question 9 – Maximizing Profit
IV. Classwork
- Page 543 Check Your Understanding 1-2
- Page 544 Free Response #2
V. Test Wednesday
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