5.3 Cost, Revenue, and Profit Maximization
Unit 2 Lesson 6: Cost, Revenue, and Profit Maximization
Main Idea
Profit is maximized when the marginal costs of production equal the marginal revenue from sales.
Lesson Objectives
By the end of this lesson, students should be able to:
Profit is maximized when the marginal costs of production equal the marginal revenue from sales.
Lesson Objectives
By the end of this lesson, students should be able to:
- Describe four key measures of cost.
- Describe two key measures of revenue.
- Describe incremental analysis to business decisions.
Reading Assignment
Read pages 127 - 129 in Economics: Principles & Practices. Complete the Guided Reading Activity (print it) as you read. Turn it in after you have completed it.