Costs of Production & Perfect Competition

Date In Class Assignment: (for the night after class)

Class #1 Fixed, Variable, Total Costs Finish Web Questions #5

(10/6) Production Function: SR vs. LR Marginal Product Handout

Productivity of Labor

Stages of Production

Paper Pizza Experiment

Receive PS #2

Class #2 Review Productivity Questions #1 & 2 in book

(10/7) Short Run Costs (McConnell: page 397)

Fixed, Variable, Total, Average Work on PS #2

Fill in the Missing Pieces

Hand in Web Questions #5

Class #3 Short Run Costs (cont.) McConnell (Ch 20): pp. 389-395

(10/8) TC, TFC, TVC Graphs Question #3 in book (possibly in class!)

Fill in the Missing Pieces (McConnell: page 397)

Capacity & Long Run Costs (LRATC)

Economies/Diseconomies of Scale

Class #4 Minimum Efficient Scale McConnell (Ch 21): pp. 399-406

(10/10) Review LRATC / Scale of Operations (up to Loss-Minimizing Case)

(If I double my inputs … 4Q, 2Q, or 1Q.) MC, ATC, Minimum Efficient Scale Handout

Review: Productivity & Costs (Ex) Finish PS #2, question #1

Long Run vs. Short Run Costs (Ex)

Class #5 Perfect Competition McConnell (Ch 21): pp. 406-415

(10/14) - characteristics (up to Long-Run Supply)

- D=MR Perfect Competition (Ex)

Hand in PS #2, question #1 -Parts I and II

Class #6 Perfect Competition McConnell (Ch 21): pp. 415-420

(10/15) - profit maximization Perfect Competition (Ex) Part III

- cost minimization Finish PS #2, question #2

Class #7 Perfect Competition Graphing Perfect Competition (Ex)

(10/16) - long run behavior Finish PS #2, questions #3-4

- finish allocative efficiency Study Questions

- over/under allocation & max C.S.

Supply Curve

Hand in PS #2, question #2

Class #8 Review Class Study for Test

(10/17) Go over exercises

Study questions

Hand in PS #2, questions #3-4