Nearpod version available
Students will be able to:
- Define marginal, total, variable, and fixed costs.
- Describe the relationship between marginal cost and the slope of total cost (and/or variable cost) curve.
- Define marginal revenue.
- Describe the relationship between marginal revenue and total revenue.
- Define average fixed, variable, and total costs.
- Compare average total (or variable) cost with marginal cost.
- Use calculus to derive the production quantity at which marginal cost equals marginal revenue.
- Recognize that profit maximization (or loss minimization) occurs when marginal cost equals marginal revenue (unless the firm should close immediately).
- Use the definition of limit to connect marginal analysis with derivative functions.
- Determine the amount of profit (or loss) a firm would earn at the point at which marginal cost equals marginal revenue.
In this personal finance lesson, students will make a connection between derivatives and marginalism.
Click NEARPOD VERSION: DERIVING MARGINALISM to access an interactive version of the lesson powered by Nearpod: students interact and respond to questions on their device, and teachers will see their responses in real time!
Grades 3-5, 6-8