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Unit 3

AP Microeconomics Unit 3: Production, Cost, and the Perfect Competition Model

22–25% of the multiple-choice section · 7 topics

From the production function to short-run and long-run costs, accounting and economic profit, the rule that marginal revenue equals marginal cost, and a perfectly competitive market in the short and long run.

Topics

  1. 3.1The Production Function
  2. 3.2Short-Run Production Costs
  3. 3.3Long-Run Production Costs
  4. 3.4Types of Profit
  5. 3.5Profit Maximization
  6. 3.6Firms’ Short-Run Decisions to Produce and Long-Run Decisions to Enter or Exit a Market
  7. 3.7Perfect Competition

Unit check

10 questions drawn from every lesson in Unit 3. Each wrong answer links back to where the idea is taught.

Take the Unit 3 check

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