Read e-book online AP Microeconomics, 2014-2015 Edition PDF

By Eric Dodge

ISBN-10: 0071803157

ISBN-13: 9780071803151

Get prepared in your AP examination with this simple and easy-to-follow research advisor, up to date for all of the most modern examination changes!

5 Steps to a five: AP Microeconomics positive aspects an efficient, 5-step plan to steer your coaching software and assist you construct the talents, wisdom, and test-taking self belief you must be successful. This totally revised version covers the newest path syllabus and gives version exams that replicate the newest model of the exam.

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Extra info for AP Microeconomics, 2014-2015 Edition

Sample text

B—An increase in the price of capital is an increase in total fixed costs. This increases AFC. Since ATC = AFC + AVC, it also increases ATC. Because fixed costs do not change with output, marginal cost and variable cost remain the same. 13. E—TFC are constant, so if AFC = $10 at q = 1 and AFC = TFC/q, then TFC must be $10. Know the way in which all total and average costs are related. 14. C—This question tests whether you know the relationships between production and cost. Marginal cost and marginal product are inverses of each other.

I. Output is set where marginal revenue equals marginal cost, creating an efficient allocation of economic resources. II. Deadweight loss is eliminated in the long run. III. Price is set above marginal cost, creating allocative inefficiency. (A) I only (B) II only (C) III only (D) I and II only (E) II and III only 21. Which of the following is necessarily a characteristic of oligopoly? (A) Free entry into and exit from the market (B) A few large producers (C) One producer of a good with no close substitutes (D) A homogenous product (E) No opportunities for collusion between firms 22.

14. The first unit of output to exhibit diminishing marginal productivity is the _____ unit. (A) 1st (B) 2nd (C) 3rd (D) 4th (E) 5th 17. The shutdown point is seen at: (A) P0, q0 (B) P1, q1 (C) P2, q2 (D) P3, q3 (E) P3, q4 Output 26 › Step 2. Determine Your Test Readiness 18. If the market price of the output increases from P1 to P3, the profit-maximizing firm will (A) increase output from q1 to q4 and earn positive economic profits. (B) increase output from q1 to q4 and earn a normal profit. (C) increase output from q1 to q3 and earn positive economic profits.

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AP Microeconomics, 2014-2015 Edition by Eric Dodge


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