Key Takeaways
Lesson Description
Key Takeaways
• Markets allocate scarce resources through prices.
• Consumers maximize utility while firms maximize profits.
• Supply and demand determine market equilibrium.
• Different market structures produce different levels of competition and efficiency.
• Governments intervene to address market failures and improve efficiency.
Must Know Equations
Profit = TR − TC
TR = Price × Quantity
MR = ΔTR ÷ ΔQ
MC = ΔTC ÷ ΔQ
ATC = TC ÷ Q
AVC = TVC ÷ Q
Elasticity = %ΔQ ÷ %ΔP
MRP = MP × MR
Must Know Graphs
Production Possibilities Curve (PPC)
Supply & Demand
Price Ceiling
Price Floor
Consumer & Producer Surplus
Perfect Competition
Monopoly
Monopolistic Competition
Oligopoly
Labor Market
Externalities
Must Know Vocabulary
Opportunity Cost
Comparative Advantage
Elasticity
Consumer Surplus
Producer Surplus
Deadweight Loss
Marginal Cost
Marginal Revenue
Perfect Competition
Monopoly
Oligopoly
Game Theory
Externality
Public Good
Pigouvian Tax
AP Exam Focus
• Draw and correctly label all required graphs.
• Calculate costs, revenue, and profit.
• Determine profit-maximizing output.
• Compare market structures.
• Analyze government intervention and market failures.