Publication: Journal of Economic Education
Volume: 37
Issue: Spring
Page: 248
Author(s): K.K. Fung, Sri Harsha Kolar and Pavan Karnam
Address (Principal Author): K.K. Fung
Economics Department
University of Memphis
Memphis, TN 38152
Office Phone: 202-939-2346
Fax Number: 202-483-1840
Internet Address (Principal Author): kkfung@memphis.edu
Title: Profit Maximization (Short Run) for Single-Price Searchers -- Flash Animation
URL: http://flashecon.org/profitB/profitB.html
Descriptive Note:
When a single-price-searching firm is faced with a downward-sloping demand curve, the geometry of profit maximization is more complicated that when a price-taking firm faces a horizontal demand curve.
Although static transparencies can help, many graphical illustrations require synchronization of changes between related diagrams. For example, as the single-price seller lowers prices along the demand curve in one diagram, total revenue first rises to a peak and then falls to zero in another diagram as demand changes from elastic to inelastic. In turn, the slope of the tangent on the total revenue curve generates that marginal revenue value back to the demand curve diagram. Well-designed Flash animations can go though these synchronized illustrations step by step with much grater transparency and mathematical accuracy.
This set of Flash animations on profit maximization for the single-price-searching firm comprises 5 modules. Each module consists of multiple steps with unique IDs separated by pauses. A menu of navigation buttons allows users to play in sequence or skip backward or forward to a specific step. Each step starts with a brief balloon note, and the animation follows at the click of a flashing play button. Such navigational flexibility makes the animations suitable both for classroom presentation and self-paced after-class review.
In addition to the animations, there is a complete package of ancillary materials consisting of notes, short-answer questions, a multiple-choice quiz, and static slides. Instructors can use the static slides to start or wrap up the animations, and/or take the multiple-choice quiz. With a link to a specific animation screen for each question and instant feedback for each attempted answer, this quiz should help students understand and master the animated concepts.
Spring
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