Objective
Students will be able to:
- Define and compute marginal cost.
- Describe the relationship of marginal cost to the slope of the total cost and variable cost curves when those costs are plotted relative to the quantity of output produced.
- Describe the effect of increasing variable costs as fixed cost remains constant.
- Explain the difference between and the uses of marginal cost and average cost.
- Define and compute average cost relative to the quantity of output.
- Explain that Marginal Product (MP) and Marginal Cost (MC) are inversely related.
- Explain that the ratio of the total cost and the quantity of output produced is average cost of production.
Concepts
In this personal finance lesson, students will analyze the relationship between differing costs using the concept of slopes.
Resources
Procedure
Click NEARPOD VERSION: RATES OF CHANGE 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!