Micro Unit 3 Intro- Costs of Production and Perfect Competition

Mr. Clifford provides an overview of microeconomics unit 3, focusing on cost production and perfect competition. The unit covers key concepts like the law of diminishing marginal returns, various cost types, and graph analysis. Students will learn about market structures, including perfect competition, and the importance of understanding graphs. The video emphasizes the theoretical nature of these concepts and their practical implications in decision-making, despite not being directly applicable in real-world business practices.

What is the law of diminishing marginal returns and how does it affect production?

Explain the difference between fixed costs and variable costs.

What are the four market structures discussed in the unit?

Describe the significance of the demand curve and the marginal revenue curve in perfect competition.

How do firms use marginal analysis in decision making?