Unit 3: Production, Cost, and the Perfect Competition Model
AP MicroeconomicsWhat You Will Learn
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Key Relationships to Master
The Cost Curve Family
MC crosses ATC and AVC at their minimum points — this is always true
Unit Exam Weight
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