{"id":17904,"date":"2019-10-28T22:53:56","date_gmt":"2019-10-29T02:53:56","guid":{"rendered":"https:\/\/iblog.dearbornschools.org\/farhoud\/?p=17904"},"modified":"2019-10-28T23:07:46","modified_gmt":"2019-10-29T03:07:46","slug":"ap-economics-10-29-19","status":"publish","type":"post","link":"https:\/\/iblog.dearbornschools.org\/farhoud\/2019\/10\/28\/ap-economics-10-29-19\/","title":{"rendered":"AP Economics – 10\/29\/19"},"content":{"rendered":"\n

I.\u00a0 Bellwork:<\/strong>\u00a0 https:\/\/www.youtube.com\/watch?v=ZUFJJqO-ZMI<\/a><\/p>\n\n\n\n

  1. How is the price of a product set for a perfectly competitive firm?<\/li>
  2. How would you describe the demand curve for a perfectly competitive market? Is it inelastic, elastic, perfectly inelastic or perfectly elastic?<\/li>
  3. Why is the price of a product in this market structure set the way it is? What causes that?<\/li>
  4. In long-run equilibrium, what holds true for perfectly competitive firms regarding TR and TC?<\/li>
  5. What kind of profit do perfectly competitive firms realize in the long run?<\/li><\/ol>\n\n\n\n

    II.\u00a0 Objectives:<\/strong><\/p>\n\n\n\n

    • Determine the profit-maximizing quantity of output for a price taking firm<\/li>
    • Assess whether or not a competitive firm is profitable<\/li>
    • Interpret economic models to form decisions on costs, profit, and production<\/li><\/ul>\n\n\n\n

      III.\u00a0 Discussion:\u00a0 Perfect Competition 588-592<\/strong><\/p>\n\n\n\n

      • Examine Table 58.1   p589<\/li>
      • Price Taker \u2013 what does that mean???<\/li>
      • MR = Price under Perfect Competition<\/li>
      • Price-taking firm\u2019s optimal output rule p 589<\/li>
      • Copy Figure 58.1 p591<\/li>
      • Accounting Profit v Economic Profit<\/li><\/ul>\n\n\n\n

        TR\/Q =Average Total revenue & market price (P)<\/p>\n\n\n\n

        TC\/Q = Average total cost (ATC)<\/p>\n\n\n\n

        TR=TC (Break-even)    or P=ATC<\/p>\n\n\n\n

        TR>TC (Profit)             or P>ATC p595 graph<\/p>\n\n\n\n

        TR<TC (Loss)             or P<ATC p595 graph<\/p>\n\n\n\n

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