Beyond the sound bites Current Events:
The Real Numbers on the Economy • NBC Nightly News • January 7th, 2010
CNBC Panel Dismisses Peter Schiff (and What WSJ Really Thinks Of Him)
Thursday is the Ch. 4 Sec. 1 Quiz.
The Chapter 3 Section 3 Make-Up is available.
The Ch. 3 Sec. 2 Quiz Make-Up is today:
The Make-Up for the Chapter 3 Section 1 Quiz is today.
The Chapter 2 Make-Up Test is today.
The Ch. 2 Sec. 3 American Free Enterprise Make-Up Quiz is today.
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Chapter 5: Supply
Section 2 The Theory of Production, p. 127
Chapter 5, Section 2 - Reading Strategy
In-class assignment (you may work with a partner for the exercise):
As you read about production, complete the graphic organizer by listing what occurs during the three stages of production.
In-class assignment: with a partner, answer the following.
In a short paragraph explain the difference between the two firms shown in the video.
What is the relationship between costs and output in gold mining and oil through the use of power production functions?
How does the second firm make money?
How is it that both firms operate efficiently?
Define production function in your own words.
Are firms taking big risks?
Production functions in gold mining and oil production
Short Run Production, Marginal and Average Product
In-class assignment, with a partner, answer the following.
What input can vary in the short run?
How does quantity change?
How is total product effected?
On the other hand, how is marginal product effected?
How does the story provided help explain these ideas?
Why don't firms keep adding workers?
How is the marginal product curved?
How does the next story explain marginal product?
Profiles in Economics
Kenneth I. Chenault, 4:00
In-class assignment: with a partner answer the following questions.
What company is Chenault Chairman and CEO of?
What size company (large, medium, or small) represents the best opportunity for job growth?
How much of the net new jobs are created by small businesses?
What size is a company that is considered a small business?
Who owns these companies?
What does a small business offer a consumer?
What is the key and how much does a dollar spent return when spent in a small business?
If people spent money locally how much in revenue would be generated?
What personal traits does a small business person exhibit?
How does a small business stay competitive with a bigger store?
Chapter 5, Section 2 - Review
In-class assignment (you may work with a partner):
Complete the graphic organizer by explaining how marginal product changes in each of the three stages of production.
Section 3: Cost, Revenue, and Profit Maximization
Cost and revenue are added to the theory of production. Several important measures of cost are introduced, including fixed cost, variable cost, total cost, and marginal cost. Total revenue and marginal revenue are the most important measures of revenue. The firm reaches the break-even point when the revenue from sales is large enough to cover the total cost of production. Furthermore, the firm finds its profit-maximizing quantity of output where the marginal cost of production is exactly equal to marginal revenue from the sale of the product.
Guide to Reading
Fixed Costs, Revenue, Break-even point, 3:22
What are fixed costs? As applied to sneakers, explain fixed costs. Draw a sample graph as demonstrated in the video. Do the costs stay constant? Then, draw the second graph to understand the cost function. What if the cost is not stagnant? What is the differnce between a linear and a non-linear revenue function? What is the formula for profit? What is the intersection of revenue and cost called?
Marginal Cost and Average Variable Cost, 2:33
Draw the one graph demonstrated here. What is the first point that you should look for on the variable cost curve? When does the marginal curve reach a minimum? Where does the variable cost reach?
profit-maximizing quantity of output
Companies in the News
FedEx Saves the Day
Measures of Cost
Figure 5.6 Production, Costs, and Revenues
If a firm's total output increases, will the fixed costs increase? Explain.
Applying Cost Principles
Costs and Business Operation
What are the differences between an e-commerce store and a traditional business?
The Global Economy and You
Marginal Analysis and Profit Maximization
Why do people, especially business owners, use marginal analysis?
Steve and Barry's Rules the Mall
Ch. 4 Prep
Ch. 5 Prep
Chapter 5 Supply Multiple Choice Quiz
Chapter 5 Puzzle
Chapter 5 Supply Flashcards
Elasticity and Supply, 3:52 (Warning: images of alcohol consumption, language, and possible objectionable content, this is not required viewing).
Email (or hand in hard copy) to firstname.lastname@example.org.
1. p. 120, How do change in supply and change in quantity supplied differ?
2. p. 121, What effect does the introduction of new technology have on the supply curve?
3. p. 121, Why does the federal government pay such subsidies?
1. p. 123, Why do factors that cause a change in individual supply also affect the market supply curve?
2. p. 124, Which factors determine whether a firm's supply curve is elastic or inelastic?
3. p. 125, How are the elasticities of supply and demand similar? How do they differ?
1. p. 125, #3-5
1. p. 125, #6-8