Explicit vs. Implicit Costs
Three Types of Profit
Accounting Profit
Economic Profit
Normal Profit
Worked Example
Why Economic Profit Matters
Profit on the Graph
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Profit = (P − ATC) × Q = ($35 − $28) × 6 = $42
AP Exam Tips
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Common Mistakes
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Unit 3 topics
Unit 3 overview3.1The Production Function3.2Short-Run Production Costs3.3Long-Run Production Costs3.4Types of Profit3.5Profit Maximization3.6Firms' Short-Run Decisions to Produce and Long-Run Decisions to Enter or Exit3.7Perfect Competition3.8Long-Run Equilibrium and Efficiency in Perfect Competition