Name: Unit 3 Part 1 Review
Uploaded: 2020-12-03T01:00:14.930Z
Description: A review of AP Micro Unit 3!

AP Microeconomics

Unit 1 – Basic Economic Concepts

Unit 2 – Supply and Demand

Unit 3 – Production, Cost, and the Perfect Competition Model

Unit 4 – Imperfect Competition

Unit 5 – Factor Markets

Unit 6 – Market Failure and the Role of Government

Exam Skills

AP Cram Sessions 2021

Previous Exam Prep

Study Tools

Unit 1 Overview: Basic Economic Concepts

Scarcity Leads to Choices

Opportunity Cost and Trade Offs

Microeconomics vs. Macroeconomics

Factors of Production

Examples of Opportunity Costs and Trade-Offs

Basic Economic Concepts: Scarcity

Three Economic Questions

What is an Economic System?

Types of Economic Systems

Resource Allocation and Economic Systems

Summary So Far


What Are "Production Possibilities"?

📈 Introduction to the Production Possibilities Curve (PPC)

🧈 Opportunity Costs and the PPC

💰 Economic Growth

Shifters of the Production Possibilities Curve (PPC)

Production Possibilities Curve (PPC)

Key Terms

What are Absolute and Comparative Advantage?

Absolute and Comparative Advantage on the AP Exam

Output Problems

Input Problems

Comparative Advantage and Trade

Introduction

Explicit and Implicit Costs Costs

Marginal Benefit and Marginal Cost

The Law of Diminishing Marginal Utility

The Cost-Benefit Maximizing Principle

Sample Questions

Cost-Benefit Analysis

Rules for Utility Maximization

Steps for working these problems

Why Is Utility Maximized When MU1/P1 = MU2/P2? 

Law of Diminishing Marginal Utility

Marginal Analysis and Consumer Choice

Unit 2 Overview: Supply and Demand

What is Demand?

The Law of Demand

📉 Graphing Demand

Differentiating Demand and Quantity Demanded

Shifting Demand

Demand

What is Supply?

The Law of Supply

The Supply Curve

Determinants of Supply

Supply

What is Price Elasticity of Demand (PED)?

Calculating Price Elasticity of Demand

Types of Elasticity

The Total Revenue Test

Price Elasticity of Demand

What is Price Elasticity of Supply (PES)?

Calculating Price Elasticity of Supply

Types of Elasticity of Supply

Price Elasticity of Supply

Other Types of Elasticity

Income Elasticity of Demand

Cross-Price Elasticity of Demand

Other Elasticities

What is Equilibrium in a Market?

Consumer Surplus

Producer Surplus

Market Equilibrium and Consumer and Producer Surplus

Equilibrium and Disequilibrium

Shortages and Surpluses

Changes in Market Equilibrium

Double-Shift Problems

Market Disequilibrium and Changes in Equilibrium

Markets and the Government

Price Controls: Ceilings and Floors

Excise Taxes and Tax Incidence

The Effects of Government Intervention in Markets

Quotas

Tariffs

International Trade and Public Policy

Unit 2 – Supply & Demand

Unit 3 Overview: Production, Cost, and the Perfect Competition Model

What is Production?

Measuring Productivity

Returns to Scale

The Production Function

Fixed Costs, Variable Costs, and Total Costs

Revenue and Profit

Average and Marginal Cost Curves

Example Table and Graphs

Short-Run Production Costs

Resources in the Long-Run

Economies of Scale

Long-Run Production Costs

The Three Types of Profit

Types of Profit

The Theory of the Firm

MR = MC: The Profit Maximizing Rule

Example

Profit Maximization

Entering and Exiting a Market

The Shut-Down Rule

Long-Run Decisions to Enter or Exit the Market

What Happens To The Market When Firms Enter or Exit?

Firms' Short-Run Decisions to Produce and Long-Run Decisions to Enter or Exit a Market

Characteristics of Perfect Competition

Side by Side Graphs in Perfect Competition

Long-Run Perfectly Competitive Graph

Shift from Short-Run to Long-Run Equilibrium in a Perfectly Competitive Market

Shift from Long-Run to Short-Run back to Long-Run

Perfect Competition

Unit 3 – Production, Cost, & the Perfect Competition Model

Unit 4 Overview: Imperfect Competition

What is Imperfect Competition?

Example Barriers to Entry

Introduction to Imperfectly Competitive Markets

Characteristics of Monopolies

Graphing Monopolies

Monopoly and Efficiency

Key Points on a Monopoly Graph

Monopolies

Refresher of a Uniformly Pricing Monopoly

What is Price Discrimination?

Graphing Perfect Price Discrimination

Producer and Consumer Surplus in Price Discrimination

Efficiency and Price Discrimination

Price Discrimination

What is Monopolistic Competition?

Characteristics of Monopolistic Competition

Graphing Monopolistic Competition

Excess Capacity

Monopolistic Competition

What is an Oligopoly?

Characteristics of Oligopolies

Game Theory

Kinked Demand Curve for an Oligopoly

Comparison on All Market Structures

Oligopoly and Game Theory

AP Micro: Unit 5 Overview: Factor Markets

Unit 5 Overview: Factor Markets

What is a Factor Market?

Analyzing Factor Productivity

Introduction to Factor Markets

Factor Supply and Demand

Determinants of Factor Demand

Determinants of Factor Supply

Changes in Factor Demand and Factor Supply

Perfect Competition and Labor Markets

Perfectly Competitive Labor Market Graph

Cost Minimizing Combination of Resources

Profit-Maximizing Combination of Resources

Perfectly Competitive Labor Markets

What is a Monopsony?

Graphing a Monoposony

Monopsony Markets

Unit 6 Overview: Market Failure and the Role of Government

What is a Socially Optimal Outcome?

Inefficient Market Outcomes

Socially Efficient and Inefficient Market Outcomes

What is an Externality?

Negative Externalities

Positive Externalities

Pigouvian Taxes and Subsidies

Example Question

Externalities

What are Public Goods?

Low-Congestion and Commons Goods

How Many Public Goods Should The Government Fund?

Public and Private Goods

Effects of Per-Unit and Lump Sum Taxes on Cost Curves

Regulating a Monopoly

The Effects of Government Intervention in Different Market Structures

Types of Inequality

The Lorenz Curve

Types of Taxes

Inequality

Unit 6 – Market Failure & the Role of Government

📝 How is the AP Micro MCQ Organized?

❓ What Kind Of Questions Can You Expect?

🎉 Tips and Tricks

Final Thoughts

AP Microeconomics Multiple Choice Questions (MCQ)

Score Higher on AP Microeconomics 2024: Tips for FRQ 2 & 3

Your Guide to the 2024 AP Microeconomics Exam

How should I prepare for the exam?

AP Microeconomics 2024 Study Plan

2024 AP Microeconomics Exam Guide

Unit 3 Part 1 Review

Unit 3 Part 1 Review

AP Microeconomics 🤑

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