Microeconomics - Unit 5 - Theory of the Firm

MICRO UNIT 5  KEY STUDY GUIDE TERMS & CONCEPTS

Production Function

Total Product

Total Product Curve

Marginal Product

Marginal Product Curve

Average Product

Total Revenue

Marginal Revenue

Average Revenue

Marginal Revenue Product of Labor

Sunk Costs

Fixed Costs

Variable Costs

short run vs. long run

Total Cost

Average Total Cost

Average Variable Cost

Marginal Cost

Law of Increasing Marginal Costs

Law of Diminishing Marginal Returns

Economies of Scale

Diseconomies of scale

explicit and implicit costs

positive economic profits

negative economic profits

firm shutdown rule

accounting profits

Total Profit

Profit maximization rule

perfect competition (competitive markets)

price takers

barriers to entry

Graphing Competitive Market conditions

MR DARP

SR industry supply curve 

productive efficiency

allocatively efficient level of output

long run equilibrium in Perf. Comp.

POWERPOINTS & NOTES
ASSIGNED VIDEOS
UNIT CONCEPTS IN MEDIA
ASSIGNED WORK
Instructor:  Mr.Magnani
 Kevin_Magnani@wrsd.net