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The key to maximizing profits is to understand and control your costs.
Essential Questions-
Why must entreprenuers keep track pf different types of costs?
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How much profit must a business owner make in order for their efforts to be worth it?
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What do the different costs look like?Notes and Activities
Key Terms-
Profit= Revenue- Costs
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Explicit v Implicit Costs
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Profits: Accounting, Economic and Normal
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Lump sum and per unit taxes/ subsidies
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Sunk Costs
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Marginal Analysis
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MPP
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APP
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ATC
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AFC
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AVC
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MC
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TVC
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TFC
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TC
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Economies of Scale
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Diseconomies of Scale
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Constant Return to Scale
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Law of Diminishing Marginal Returns
Former AP Questions- Free Response2010 Form B Question #2;2008 Form B Question #32006 Question #22005 (Form B) Question #2Helpful WebsitesFire in a Bangledeshi Factory http://www.cnn.com/2012/11/25/world/asia/bangladesh-factory-fire/index.html?hpt=hp_t2http://www.tutor2u.net/economics/content/topics/competition/efficiency.htm Summary of Efficiency and where they are on the graphshttp://m.npr.org/news/front/165143816 Why did the prioce of coca- cola stay the same for 70 years? http://www.capradio.org/news/npr/story?storyid=165143816- listen to the storyhttp://www.youtube.com/watch?v=4j9zglAnyXg difference between taxes in 60 secondshttp://www.youtube.com/watch?v=h3yPi7QidH4- Cost of College"Inside the mind of Google" (CNBC)- http://www.youtube.com/watch?v=kFL5tLYyZ_Uhttp://www.youtube.com/watch?v=J_tdZZkRvbg- maximizing profit videoSigns of Overproduction- http://www.sixsigmatrainingconsulting.com/six-sigma-tools/the-seven-types-of-waste-overproduction/Allocative Efficiency- http://vlad1mir.tripod.com/allocative_efficiency_in_a_perfectly_competitive_market.htm -
Last Modified on November 12, 2020
