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Microeconomics Unit 3 Theory of the Firm

Unit 3 Key Ideas

Text:  Economics by McConnell & Brue 14th ed.

• Read Chapter 22 The Costs of Production (pp. 444-463)
• Read Chapter 23 Pure Competition (pp.467-490)
• Read Chapter 24 Pure Monopoly (pp. 493-512)
• Read Chapter 25 Monopolistic Competition & Oligopoly (pp. 516-522)

Visuals for Unit 3:

• All Unit 3 Visuals
• Mic3-1   Different Types of Market Structures
• Mic3-2   Marginal Product & Marginal Cost
• Mic3-3   Total Fixed, Total Variable, & Total Cost
• Mic3-4   Average Fixed, Average Variable, & Average Costs
• Mic3-5   Perfectly Comp. Firm & industry in SR Equilibrium
• Mic3-6   Profit, Loss, & Shutdown
• Mic3-7   Perfectly Competitve Firm in LR Equilibrium
• Mic3-8  How Increase in Demand impacts LR Equilibrium for Firm & Industry
• Mic3-9  How Decrease in Demand impacts LR Equilibrium for Firm & Industry
• Mic3-10  Price and Marginal Revenue for a Monopolist
• Mic3-11  The Profit Maximizing Position for a Monopoly
• Mic3-12  SR & LR Equilibrium for a Monopolistic Competitor

(19th ed.) PowerPoints:
Chapter 7  Businesses & Cost of Production (19th ed.)
Chapter 8  Pure Competition in the Short Run (19th ed.)
Chapter 9  Pure Competition in the Long Run (19th ed.)
Chapter 10 Pure Monopoly (19th ed.)
Chapter 11 Monopolistic Competition & Oligopoly (19th ed.)

Practice Questions:

• Blackboard:  Chapters 22, 23, 24, 25

Videos:

ACDC Micro Unit 3 Cost of Production & Perfect Competition

• ACDC Micro Unit 3 Intro- Costs of Production & Perfect Competition (2:51)
• ACDC Micro 3-1 Law of Diminishing Marginal Returns (5:30)
• ACDC Micro 3-2 Marginal Product & Marginal Cost (4:55)
• ACDC Micro 3-3 Cost Curves MC, ATC, AVC, AFC (2:46)
• Costs of Production & Cost Curves (1 of 2)
• Costs of Production & Cost Curves (2 of 2)
• ACDC Micro 3-4 The Shut Down Rule (2:21)
• ACDC Micro 3-5 Perfect Competition in the Short Run (3:34)
• ACDC Micro 3-6 Perfect Competition in the Long Run (2:04)
• ACDC Micro 3-7 MR=MC Practice (2:11)
• ACDC Micro 3-8 Graphing Perfect Competition (2:01)
• ACDC Micro 3-9 Four Market Structures Simulation for AP Economics (15:00)

ACDC Micro Unit 3 Imperfect Competition

• ACDC Micro Intro - Imperfect Competition (1:28)
• ACDC Micro 4-1 Monopoly Demand & MR (4:42)
• ACDC Micro 4-2 Monopoly Graph Review (2:31)
• ACDC Micro 4-3 Monopoly Dead Weight Loss (Consumer & Producer Surplus) Review (2:40)
• ACDC Micro 4-4 Elastic & Inelastic Range of Demand for Monopolies (1:58)
• ACDC Micro 4-5 Socially Optimal & Fair Return Points for Monopolies (2:58)
• ACDC Micro 4-6 Lump Sum and Per Unit Subsidy (Tax) (2:04)
• ACDC Micro 4-7 Ultimate Monopoly Review (2:37)
• ACDC Micro 4-8 Oligopolies & Game Theory (3:25)
• ACDC Micro 4-9 Game Theory Dominant Strategy Practice (2:53)
• ACDC Micro 4-10 Kinked Demand Curve (2:03)
• ACDC Micro 4-11 Monopolistic Competition in the Long Run (3:25)
• ACDC Micro 4-12 Dead Weight Loss (4:46)
• ACDC Micro 4-13 Price Discriminating Monopoly (4:42)

Other Micro Units:

Micro Unit 1
Micro Unit 2
Micro Unit 3
Micro Unit 4
Micro Unit 5

Unit 3 Review List

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