A2 A Level Economics Unit 2 The Price System and the Micro Economy

This powerpoint is not updated for the new 2023 syllabus, but most of the topics are included. The topics that aren’t included are the ones that have been moved from AS to A2.A2 A Level Unit 2 The Price System and the Micro Economy

*This powerpoint presentation consists of six parts. These powerpoints will last 6 weeks of class time. This is all you need for class. Included is a detailed powerpoint will all of the information for unit 2 the students need to know for the exam. Practice questions and activities are included in the presentation. Don’t spend any more time preparing for economics class. This resource is all you need. *

The 6 different sections of unit 2 include:

1. Law of diminishing marginal utility
-its relationship to derivation of an individual demand schedule
-equi-marginal principle
-limitations of marginal utility theory; rational behavior vs. behavioral economic models

2. Indifference curves and budget lines
-income, substitution and price effects for various types of goods

**3. Types of cost, revenue and profit, short-run and long-run production **
-short-run production function: fixed and variable factors of production, total product, average product and marginal product
-Long-run production function

**4. Different market structures **
-perfect competition, imperfect competition (monopoly, monopolistic competition, oligopoly, natural monopoly)
-structure of markets as explained by number of buyers and sellers, nature of product, degree of freedom of entry and nature of information
-contestable markets and their implications
-concentration ratio

5. Growth and survival of firms
-reasons for small firms
-integration, diversification, mergers, cartels

6. Differing objectives of a firm
-traditional profit maximising objective of firm
-an understanding of other objectives of the firm
-pricing policy
-comparisons of performance of firms