Unit 4 Problem Set Rubric

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Presentation transcript:

Unit 4 Problem Set Rubric

Question #1 Practice FRQs

Question #2 Worksheets

Question #3

3A. 5 Points Total 2 point- Demand equals MR for perfect competition because firms are price takers 2 point- Demand is greater than MR for monopolies because to sell another unit a must lower its price for the next unit and the other units it could have sold at a higher price. So the additional revenue of each unit is less than the price of that unit 1 Point- Price of the 3rd unit is $8 but the MR is only $6

3B. 5 Points Total 1 point-Correctly completed chart 1 Point- Correctly plotted Demand and MR 1 point- Correctly plotted TR Price Quantity Demanded Total Revenue Marginal Revenue $11.00 0 - 10 1 10 9 2 18 8 8 3 24 6 7 4 28 4 6 5 30 2 -2 -4 -6

2 points- Labeled elastic and inelastic ranges. Dollars MR D Q Dollars TR Q

Question #4 Monopolistic Competition

4. 5 Points Total 1 point- Demand greater than MR 1 point- Price equals ATC (nor profit in long-run) 1 Point- Not allocative since it is not producing where price equals MC 1 Point- Not productive since it is not producing at minimum ATC 1 Point- Excess capacity is quantity between profit maximizing output and minimum ATC.

Question #5 Oligopoly

Question #6 Study Guides

4. 5 Points Total 1 point- Demand greater than MR 1 point- Price equals ATC (nor profit in long-run) 1 Point- Not allocative since it is not producing where price equals MC 1 Point- Not productive since it is not producing at minimum ATC 1 Point- Excess capacity is quantity between profit maximizing output and minimum ATC.