Lesson 1: Costs, Production, and Profit
Duration of Days: 4
Lesson Objective
Students will explain how firms make production decisions by analyzing explicit costs, implicit costs, accounting profit, economic profit, normal profit, short-run production, and diminishing marginal returns.
What costs do firms face? How do firms know whether they are truly profitable? Why does productivity change as more resources are added?
D2.Eco.2.9-12
D2.Eco.3.9-12
D2.Eco.4.9-12
CCSS.ELA-LITERACY.RH.11-12.4
CCSS.ELA-LITERACY.RH.11-12.7
Students use business scenarios, production tables, and calculations to explore how firms measure costs, productivity, and profit. DOK Level 2
Formula supports, partially completed tables, guided examples, calculator support, partner practice
Calculation practice and short written response