This lesson covers Topics 3.3-3.7 in the AP Syllabus. Today we will see how costs are different in the long-run and how perfectly competitive markets change in the long-run.
Learning Target
Analyze the ways in which incentives influence what is produced and distributed in a market system.
Evaluate the extent to which competition among sellers and among buyers exists in specific markets.
Describe the consequences of competition in specific markets.
Criteria for Success
I will be able to use ideas related to firm theory to analyze economic problems.
I will be able to demonstrate this understanding using a graph of the aforementioned model.
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Assignments
Read: Krugman (Modules 56 and 60) and watch the following videos.
Watch: The video lecture for today's topic (linked above).
Optional: The videos linked below.
Formative Assessment (MCQ's): You will take a formal assessment during class. The assessment will consist of multiple-choice questions and one FRQ from an old AP Exam. Doing the problem of the day and ensuring that you understand it will help you prepare for today's formative assessment and help to ensure that you understand the concepts in this lesson.
Problem of the Day: Work cooperatively with another AP Economics student to construct a response to the following prompt. Complete the response in your notebook, NOTING WITH WHOM YOU WORKED.
When examining how the costs of a firm behave as output increases, economists distinguish between the short-run and long-run. Explain why.
Do #9 in the "Problems and Applications" section at the end of Chapter 14 in Mankiw.