Main content
Production decisions and economic profit
Learn
Introduction to production functions Total product, marginal product, and average product
Practice
Learn
Fixed, variable, and marginal costMarginal cost, average variable cost, and average total costGraphs of MC, AVC and ATCMarginal revenue and marginal costMarginal revenue below average total costHow costs change when fixed and variable costs changeGraphical impact of cost changes on marginal and average costsVisualizing average costs and marginal costs as slopeThe structure of costs in the short run
Practice
Learn
Long-run average total cost curveEconomies and diseconomies of scaleMinimum efficient scale and market concentration The structure of costs in the long run
Practice
Identify your areas for growth in these lessons:
Learn
Economic profit vs accounting profitDepreciation and opportunity cost of capitalLong term supply curve and economic profitExplicit and implicit costs and accounting and economic profit
Practice
Learn
Profit maximizationProfit maximization worked example
Practice
Learn
Shutting down or exiting industry based on priceLong-run economic profit for perfectly competitive firmsLong run supply when industry costs aren't constantFree response question (FRQ) on perfect competition
Identify your areas for growth in these lessons:
Test your understanding of Production decisions and economic profit with these 9 questions.