Module 3.5 Profit Maximization

Total revenue and total cost, marginal revenue and marginal cost, the MR = MC rule worked from a table and on a graph, and a question the exam loves: which cost changes move the profit-maximizing quantity (per-unit costs and subsidies) and which do not (rent and other fixed costs, a lump-sum tax). Ends with two AP-style multiple-choice questions and a free-response part. Every worked example ends with a "what just happened" recap, and each formula is re-taught the moment it comes back, so you never have to remember it from ten minutes ago. Pause at each exam question and try it first. Follows Module 3.5 of Krugman's Economics for the AP Course, 4th ed., and College Board's AP Microeconomics Topic 3.5. The exam questions are original, written in the style of released AP questions and scoring guidelines. All of Unit 3 in one place: https://www.econlearn.org/units/ap-mi... Practice the graph free: https://www.econlearn.org/sandbox/per... 0:00 Intro 0:18 Profit from totals 1:13 One batch at a time 2:45 MR = MC 3:08 The graph 3:34 Exam traps 4:22 A fixed cost changes 5:33 A per-unit cost changes 6:44 Exam moment 9:46 Recap A companion to Krugman's Economics for the AP Course, 4th ed. Not affiliated with the authors or BFW. AP is a trademark registered by College Board, which is not affiliated with, and does not endorse, this video.