Micro 3.4 & 3.5 Types of Profit and Profit Maximization

This video covers topic 3.4 & 3.5 of the AP Microeconomics Course Exam Description (CED). It includes the accounting profit, economic profit, normal profit, breaking even, profit maximization, and marginal analysis.
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I would like to acknowlege the work of Dick Brunelle and Steven Reff from Reffonomics.com who’s work inspired many of the review games on ReviewEcon.com. I would also like to thank Francis McMann, James Chasey, and Steven Reff who taught me how to be an effective AP Economics teacher at AP summer institutes; as well as the countless high school teachers, and college professors from the AP readings, economics facebook groups, and #econtwitter.

[@andrirogel8028]

These videos are really helpful. Thank you for taking time to make them!

[@ReviewEcon]

You're very welcome! Good luck with your studies!

[@Mouath99]

you said economic profit is TR - total costs, why in the examples you did accounting profit - previous income

[@ReviewEcon]

There are different ways to come up with total revenue. 4= 2+2 and 4= 1+3 Economic profit is TR-TC and AP-implicit costs. I hope that helps!

[@Mouath99]

and to find profit max. we use TR>TC at largest point or MR=MC? thank you for your hard work

[@ReviewEcon]

You can find profit max quantity either way, but on the AP exam marginal analysis is more commonly required so MR=MC is what you will use most.

[@Mouath99]

@@ReviewEconappreciate it thank you

[@myplace571]

hello do i have to learn the monopoly graph this lesson? or is it covered again in unit 4? thank you

[@ReviewEcon]

You do not need to learn to draw or fully understand the monopoly graph until unit 4. For now, you need to know that any time you see MR and MC on a graph, the profit maximizing quantity is found on the X axis below that intersection.

[@myplace571]

@@ReviewEcon understood thank you so much

[@ReviewEcon]

You're very welcome!