Homework for Tuesday 10/20 I. Make sure you have done this homework from yesterday. Read pages 197 – 202 (stop at “Short-Run Production Costs.”) 1. Explain the difference between explicit and implicit costs. 2. Explain the difference between normal profit and economic profit 3. For a firm, what distinguishes the short run from the long run? – DO NOT just say “time.” How much time? Time to do what? 4. Define: total product, marginal product, average product 5. Explain the “law of diminishing marginal returns.” 6. Look at the graph on p. 203. When does total product begin to decrease? When does average product begin to decrease? 7. Do the quick quiz below the graph and check your answers. II. - Do Ch. 9 Discussion Question #1 & 2; AP Review Questions #1 & 2; and Problem #1. - Read p. 202– 209 (stop at “Long-Run Production Costs). - Do the quick quiz on 207 and check answers. - Explain IN YOUR OWN WORDS why the marginal cost curve intersects the AVC and ATC curves at their minimum points. This is a key idea. Spend some serious time trying to wrap your head around this if you don’t get it at first. - Do Discussion Question 5 and AP Review Question 3.