Monday - Tuesday, February 22-23, 2010

The Costs of Production

OBJECTIVES 

Students shall be able to

1. define economic cost,

2. define explicit cost and implicit cost,

3. differentiate between explicit and implicit costs,

4. define normal profit and economic profit,

5. identify levels of economic profit,

6. define long run and short run,

7. define marginal cost, average cost, and total cost,

8. differentiate among marginal cost, average cost, and total cost,

9. identify the relationship among marginal cost, average cost, and total cost,

10. define increasing, diminishing, and negative marginal returns,

11. identify graphically increasing, diminishing, and negative marginal returns from both marginal product and total product curves,

12. define fixed cost, variable cost, and total cost,

13. differentiate among fixed cost, variable cost, and total cost,

14. identify graphically fixed cost, variable cost, and total cost,

15. identify graphically the relationship between product and cost curves,

16. explain the relationship between short run and long run total cost curves,

17. define economies of scale, constant returns to scale, and diseconomies of scale,

18. differentiate among economies of scale, constant returns to scale, and diseconomies of scale,

19. identify graphically economies of scale, constant returns to scale, and diseconomies of scale,

20. define minimum efficient scale,

21. identify graphically minimum efficient scale,

22. define natural monopoly, and

23. identify graphically a natural monopoly.

ACTIVITIES

1. Questions on marginal analysis from Heyne chapter 5.

Assignments:

1. Take answer the assigned question set on LMS.

 

ASSESSMENT PROCEDURES

Monitor and adjust as necessary.