Production & Cost Lab

Analyze firm behavior and cost structures, leading to the study of the perfectly competitive market model. Production & Cost Lab turns that idea into something you can manipulate directly and watch respond.

Analyze firm behavior and cost structures, leading to the study of the perfectly competitive market model. It focuses on The Law of Diminishing Marginal Returns, Short-Run vs. Long-Run Costs, Marginal Cost and Average Total Cost, Profit Maximization (MR=MC), Perfect Competition Characteristics, Long-Run Equilibrium and Efficiency from the “Unit 3: Production, Cost, and the Perfect Competition Model” section.

The “Labor (L):” slider change the key inputs. Every change updates the visualization in real time, so you can see exactly how each variable affects the outcome.

AP Microeconomics is an introductory college-level course that examines the principles of economics applying to individual decision-makers, including consumers and producers. The curriculum focuses on the nature and fun… This demo is the interactive piece for the “Unit 3: Production, Cost, and the Perfect Competition Model” section. Open the full AP Microeconomics course wiki at https://www.getlykke.com/explore/public/ap-microeconomics-5a5959ac-ec57-4628-9b9e-5b5f1587dbe6 for notes, flashcards, quizzes and the other demos.

You'll build intuition for The Law of Diminishing Marginal Returns, Short-Run vs. Long-Run Costs, Marginal Cost and Average Total Cost, Profit Maximization (MR=MC), Perfect Competition Characteristics, Long-Run Equilibrium and Efficiency — and, crucially, see how they behave when you change the inputs, which is hard to get from a textbook or lecture on AP Microeconomics alone.