Beyond the sound bites Current Events:
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:
Cf. http://shanawiki.wikispaces.com/Honors+Business+Economics+Fall+2010+Chapter+3+Section+2+Quiz+Prep+Page
The Make-Up for the Chapter 3 Section 1 Quiz is today.
The Chapter 2 Make-Up Test is today.
Cf. http://shanawiki.wikispaces.com/Honors+Business+Economics+Chapter+2+Test+Prep+Page+Fall+2010
The Ch. 2 Sec. 3 American Free Enterprise Make-Up Quiz is today.
Standard feature:
The electronic edition of the Philadelphia Inquirer is available. We have the Sunday edition, available on Mondays, in addition to the Tuesday through Friday editions on the other days.
Please follow the steps below:
URL: http://nie.philly.com
Click on the words "Access e-Inquirer" located on the gray toolbar underneath the green locker on the opening page.
Login:
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Chapter 5: Supply
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.
Reading Strategy
In-class assignment, with a partner, fill in the graphic organizer.
Complete the graphic organizer below by explaining how total revenue differs from marginal revenue. Then provide an example of each.
Guide to Reading
Section Preview
Content Vocabulary
fixed costs
Fixed Costs, Revenue, Break-even point
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 difference between a linear and a non-linear revenue function? What is the formula for profit? What is the intersection of revenue and cost called?
overhead
variable costs
Marginal Cost and Average Variable Cost
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?
total costs
Micro average total cost, 8:25
In-class assignment, working with a partner, answer the following questions.
What elements (they start from the very beginning of the clip) add up to the total cost?
As we add units, is the total cost going up, or down?
What happens when you add the fourth unit?
Do we have decreasing marginal return?
How much is the average total cost when we add the fourth unit?
Do the 5th and 6th units add to our production costs?
Why do production costs rise?
marginal costs
Deriving the Marginal Cost Curve, 3:12
In-class assignment, with a partner, answer the following questions.
Draw the marginal cost curve.
Why does the marginal cost of production vary as you change the quantity you are producing?
e-commerce
e-commerce - evolution, 6:52
In-class assignment, with a partner, answer the following questions.
How has commerce changed over the years?
What happened in 1994?
What happened in the early days? What was it like then?
What happened with growth?
What do we expect to happen when looking ahead?
Summarize the first ten years in ecommerce.
break-even point
total revenue
marginal revenue
marginal analysis
profit-maximizing quantity of output
Companies in the News
FedEx Saves the Day
Measures of Cost
Fixed Costs
Variable Costs
Figure 5.6 Production, Costs, and Revenues
Total Cost
Marginal Cost
Reading Check
Analyzing
If a firm's total output increases, will the fixed costs increase? Explain.
Applying Cost Principles
Costs and Business Operation
Break-Even Point
Reading Check
Contrasting
What are the differences between an e-commerce store and a traditional business?
The Global Economy and You
Marginal Analysis and Profit Maximization
Total Revenue
Marginal Revenue
Marginal Analysis
Profit Maximization
Reading Check
Summarizing
Why do people, especially business owners, use marginal analysis?
Steve and Barry's Rules the Mall
In-class assignment, with a partner, fill in the graphic organizer.
Use the graphic organizer to identify examples of both fixed and variable costs.
Ch. 4 Prep
Cf. http://glencoe.mcgraw-hill.com/sites/0078747643/student_view0/unit2/chapter4/
Multiple Choice Quiz
Cf. http://glencoe.mcgraw-hill.com/sites/0078747643/student_view0/unit2/chapter5/self-check_quizzes.html
Crossword Puzzle
Cf. http://www.glencoe.com/olc_games/game_engine/content/gln_ss/epp_08/ch05/index.html
Flashcard
Cf. http://www.glencoe.com/qe/efcsec.php?qi=15424
Ch. 5 Prep
Chapter 5 Supply Multiple Choice Quiz
Cf. http://glencoe.mcgraw-hill.com/sites/0078747643/student_view0/unit2/chapter5/self-check_quizzes.html
Chapter 5 Puzzle
Cf. http://www.glencoe.com/olc_games/game_engine/content/gln_ss/epp_08/ch05/index.html
Chapter 5 Supply Flashcards
Cf. http://www.glencoe.com/qe/efcsec.php?qi=15424
Email (or hand in hard copy) to gmsmith@shanahan.org.
Thursday is the Ch. 4 Sec. 1 Quiz.
Wednesday HW
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?
Thursday HW
1. p. 125, #3-5
Friday HW
1. p. 125, #6-8
