11/13 Do Now11/13 Do Now What is marginal product? Extra output or change in total product caused...
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11/13 Do Now What is marginal product? Extra output or change in total product caused by the addition of one more unit of variable input AKA: How much more or less of a product there is when you add or subtract a factor of production. Example: Adding one more worker (variable input) means ten more cars will be made (extra output or change in total product)
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Transcript of 11/13 Do Now11/13 Do Now What is marginal product? Extra output or change in total product caused...
11/13 Do Now
What is marginal product?
Extra output or change in total product caused by the addition of one more unit of variable input
AKA: How much more or less of a product there is when you add or subtract a factor of production.
Example: Adding one more worker (variable input) means ten more cars will be made (extra output or change in total product)
Agenda
1. Do Now
2. Vocabulary Review (45 min)
3. Matching Review (20 min)
4. Chapter 5, Section 3 Notes (20 m)
5. Marginal Chart (30 min)
Vocabulary Review
1. Review section 1 and 2 on page 133.
2. In your notebook: Write down the vocabulary that you do not know well.
3. Go back into your notes and highlight or underline.
4. Choose two vocabulary words for the vocabulary review.
Vocabulary review
On a separate paper, for each word Side 1: Vocabulary Word Side 2:
a. Rewrite formal definitionb. Create student friendly definitionc. Provide an example that uses the vocabulary
We will be using your student friendly definition to guess the vocabulary word.
Matching Review
In your notebook: Page 134: Complete matching 1 -13. Write complete sentences.
Chapter 5, Section 3
Cost, Revenue, and Profit Maximization
Factors of Production Land: Natural and Raw Resources
Labor: The workers
Capital: Resources to make goods.
Entrepreneurs: Business people
When all factors of production are present production can take place.
All Factors of Production have costs
Capital
Capital good: used to produce other goods and services
Input has costs.
There are different types of cost
Cost
Cost that businesses have regardless of output. Costs that do not change.
Overhead: Total Fixed Cost
Examples: Salaries of executives, taxes, building rentals, wear and tear on capital goods
Fixed Cost
• Changes when output changes. Cost that affected by output
• Generally are associated with labor and raw materials.
• Example: hiring or firing workers, electricity costs, shipping costs.
Variable Costs
The extra cost incurred when a business produces one additional unit of a product.
Per-unit increase in variable costs that stems from using additional factors of production.
Marginal cost
Total Cost of production includes fixed and variable costs.
Total Cost
Capital
Capital good: used to produce other goods and services
Input has costs.
There are different types of cost
Cost
Cost that businesses have regardless of output. Costs that do not change.
Overhead: Total Fixed Cost
Examples: Salaries of executives, taxes, building rentals, wear and tear on capital goods
Fixed Cost
• Changes when output changes. Cost that affected by output
• Generally are associated with labor and raw materials.
• Example: hiring or firing workers, electricity costs, shipping costs.
Variable Costs
The extra cost incurred when a business produces one additional unit of a product.
Per-unit increase in variable costs that stems from using additional factors of production.
Marginal cost
Total Cost of production includes fixed and variable costs.
Total Cost
