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Unit: Production, cost, and the perfect competition model

AP Micro:
CBA (BI)
,
CBA‑2 (EU)
,
PRD (BI)
,
PRD‑1 (EU)
,
PRD‑2 (EU)

0

Possible mastery points
AP Micro:
PRD‑1 (EU)
,
PRD‑1.A (LO)
,
PRD‑1.A.1 (EK)
,
PRD‑1.A.2 (EK)
,
PRD‑1.A.3 (EK)
AP Micro:
PRD (BI)
,
PRD‑1 (EU)
,
PRD‑1.A (LO)
,
PRD‑1.A.10 (EK)
,
PRD‑1.A.11 (EK)
,
PRD‑1.A.12 (EK)
,
PRD‑1.A.9 (EK)
Level up on the above skills and collect up to 400 Mastery points
AP Micro:
CBA (BI)
,
CBA‑2 (EU)
,
CBA‑2.A (LO)
,
CBA‑2.C (LO)
,
CBA‑2.C.1 (EK)
,
CBA‑2.C.2 (EK)
Practice
Types of profitGet 3 of 4 questions to level up!
AP Micro:
CBA (BI)
,
CBA‑2 (EU)
,
CBA‑2.A (LO)
,
CBA‑2.D (LO)
,
CBA‑2.D.1 (EK)
Level up on the above skills and collect up to 200 Mastery points
Level up on the above skills and collect up to 500 Mastery points
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Unit test

Level up on all the skills in this unit and collect up to 1100 Mastery points!

About this unit

This unit covers production and cost analysis and the behavior of firms in perfect competition. Topics include an introdduction to the short-run production function, diminishing marginal returns, the link between productivity and costs, the relationships that exist among cost curves, long-run costs, economies and diseconomies of scale, profit maximization, and the behavior of firms in perfectly competitive markets in the short run and the long run.
AP® is a registered trademark of the College Board, which has not reviewed this resource.