AP Microeconomics. Supply and Demand At the Margin To market we go Price taker, heart breaker Factor...

AP Microeconomics

Supply and

Demand

At the Margin

To market we go

Price taker, heart

breaker

Factor This!

10020

0300400500

1002003004005

00

100200300400500

100200300400500

100200300400500

Supply & Demand for 100

Question: The law of this says that price and quantity are inversely related

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Supply & Demand for 100

Answer: Demand

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Supply & Demand 200

Question: Of shortage and surplus, the one caused by a price floor

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Supply & Demand for 200

Answer: Surplus

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Supply & Demand for 300

Question: If an increase in the price of sugar causes an decrease in demand for cream, the two goods have this relationship to each other.Check Your Answer

Supply & Demand for 300

Answer: Complimentary Goods

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Supply & Demand for 400

Question: This double shift causes an increase in price and an indeterminate effect on quantity

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Supply & Demand for 400

Answer: Decrease supply, increase demand

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Supply & Demand for 500

Question: A sales tax increase has these effects on supply, demand, price, quantity

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Supply & Demand for 500

Answer: decrease S, no change D, increase P, decrease Q

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Factor This!for 100

Question: These are the four factors of production

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Factor This! for 100

Answer: land, labor, capital, entrepreneurial ability

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Factor This !for 200

Question: A firm wishing to maximize profit would hire this quantity of a resource.

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Factor This! for 200

Answer: MRP = MRC

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Factor This for 300

Question: A firm that can hire as many workers as it wants at the equilibrium wage is operating in this type of labor market.Check Your Answer

Factor This for 300

Answer: Perfectly Competitive

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Factor This for 400

Question: For a monopsonistic firm, this is the relationship between supply for a resource and its MRC.Check Your Answer

Factor This for 400

Answer: MRC > S

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Factor This for 500Question: A firm using 2

resources, and wishing to minimize costs for a particular quantity of production, would spend its last dollar on each resource so that these were equal.Check Your Answer

Factor This for 500

Answer: MPL/PL = MPC/PC

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Price taker,heart breaker for 100

Question: Unlike firms attempting to enter a monopolized market, firms in a perfectly competitive market face none of these.

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Price taker,heart breaker for 100

Answer: Barriers to entry

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Price Taker, Heart Breaker for 200

Question: Product price for a firm in perfect competition is established here

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Price Taker, Heart Breaker for 200

Answer: The Market

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Price Taker, Heart Breaker for 300

Question: For a perfectly competitive firm, this is the relationship between price and marginal revenue

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Price Taker, Heart Breaker for 300

Answer: Equal

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Price Taker, Heart Breaker for 400

Question: The demand graph for a perfectly competitive firm has this elasticityCheck Your Answer

Price taker, Heart breaker for 400

Answer: Perfectly Elastic

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Price taker, Heart breaker for 500

Question: Above AVC, this graph is the same as the firm’s supply graph

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Price taker, Heart Breaker for 500

Answer: MC

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To Market we go for 100

Question: Of monopolistic competition and oligopoly, the market which has fewer dominant firmsCheck Your Answer

TO market we go for 100

Answer: Oligopoly

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To market we go for 200

Question: The prisoner’s dilemma helps explain the actions of firms in this market

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TO market we go for 200

Answer: oligopoly

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TO market we go for 300Question: The 2

markets in which a firm earns a normal profit at long-run equilibrium

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TO market we go for 300

Answer: Perfect competition, monopolistic competition

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TO market we go for 400Question: This is the

relationship in any less competitive market between average revenue and marginal revenue.Check Your Answer

TO market we go for 400

Answer: AR > MR

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To market we go for 500Question: If a

monopolist is to be able to practice perfect price discrimination, these 2 additional conditions must be presentCheck Your Answer

To market we go for 500

Answer: Buyer segregation and no resale

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At the Margin for 100

Question: To maximize profit or minimize cost, a firm should produce that quantity such that this is true.

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At the Margin for 100

Answer: MR = MC

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At the Margin for 200

Question: The fact that consumer satisfaction decreases as additional units of a product are consumed is explained by this economic law.

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At the Margin for 200

Answer: Law of Diminishing Marginal Utility

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At the Margin for 300

Question: This term is found by calculating the change in total revenue brought about by hiring an additional unit of a resource.

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At the Margin for 300

Answer: Marginal Revenue Product

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At the Margin for 400

Question: Price will be equal to this when a firm is producing a quantity at which allocative efficiency is achieved.Check Your Answer

At the Margin for 400

Answer: Marginal Cost

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At the Margin for 500

Question: The mirror image of marginal cost, this will increase, diminish, and then become negative as additional units of a variable resource are added to a fixed resource.

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At the margin for 500

Answer: Marginal Product

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