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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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)
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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.
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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.
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Matching Review
In your notebook: Page 134: Complete matching 1 -13. Write complete sentences.
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Chapter 5, Section 3
Cost, Revenue, and Profit Maximization
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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
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Capital
Capital good: used to produce other goods and services
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Input has costs.
There are different types of cost
Cost
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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
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• 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
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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
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Total Cost of production includes fixed and variable costs.
Total Cost
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Capital
Capital good: used to produce other goods and services
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Input has costs.
There are different types of cost
Cost
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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
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• 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
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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
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Total Cost of production includes fixed and variable costs.
Total Cost
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