Production and Costs:

• Accounting vs. Economic Profit

• Fixed vs. Variable

• Total Product, Marginal Product and Average Product

• Three Stages of Returns

• Long-run: All costs are variable (Economies of Scale)

• Calculations and Graph Shapes for TFC, TVC, and TC

• Calculations and Graph Shapes for AFC, ATC, AVC, and MC

Perfect Competition

• Characteristics

• MR DARP

• Produce where MR = MC (profit maximization)

• Long-run: All firms break even