Define the short run and the long run. What types of industries are likely characterized by longer short runs? Why?

Explain, verbally and graphically, total fixed costs, average fixed costs, total variable costs, and average variable costs.

Graphically, verbally, and mathematically (with equations) explain the relationships between TC, TVC, TFC, ATC, AVC and AFC.

Suppose a firm produces bicycles. Will the firm's accounting statement reflect the opportunity cost of bicycles? Why or why not?

Explain the factors that cause a firm's short-run average variable costs to decline initially, but to eventually increase as output rises.

Consider this table to answer the following questions:
a. What is the average total cost of producing 2 units of output?
b. What is the total cost of producing 4 units of output?
c. What is the marginal cost of producing the fifth unit?

In producer theory, how are costs of production derived? What are the three assumptions of producer theory? How are they related to scarcity? What role does the consumer play?

In a market economy, what do firms do? What are residual claimants? Differentiate between the three types of firms discussed in class.

Differentiate between the explicit, implicit costs that firms face. What are total costs? What sunk costs?

Differentiate between economic profit, zero economic profit, and accounting profit.

See David Friedman's blogpost on policies meant to alter the marginal benefits and costs of hijackers.