Act III · Casting the Sellers · Module 07
The Shopkeeper's Offer
Profit maximization and the supply curve
24 slides · Hubbard & O'Brien, chapter 3 (Part B).
The story
Where this fits in Marginal Falls
The mayor announces a pastry price. Each seller must decide how much to produce at that price. Comparing the revenue and cost of additional output reveals how a firm's production choices become a supply curve.
A question to take into class
At a given market price, what tells the bakery whether producing one more pastry raises profit?
From the slides to the classroom
Activities used in this module
This module is taught through its slide deck and classroom discussion. No dedicated live activity is used for this topic.
Activities open at marginalfalls.com. Students join using the room code supplied by their instructor.