AP Microeconomics

Supply and Demand At the Margin To market we go Price taker, heart breaker Factor This!

Supply & Demand for 100 Question: The law of this says that price and quantity are inversely related Check Your Answer

Supply & Demand for 100 Answer: Demand Back to the Game Board

Supply & Demand 200 Question: Of shortage and surplus, the one caused by a price floor Check Your Answer

Supply & Demand for 200 Answer: Surplus Back to the Game Board

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 Back to the Game Board

Supply & Demand for 400 Question: This double shift causes an increase in price and an indeterminate effect on quantity Check Your Answer

Supply & Demand for 400 Answer: Decrease supply, increase demand Back to the Game Board

Supply & Demand for 500 Question: A sales tax increase has these effects on supply, demand, price, quantity Check Your Answer

Supply & Demand for 500 Answer: decrease S, no change D, increase P, decrease Q Back to the Game Board

Factor This!for 100 Question: These are the four factors of production Check Your Answer

Factor This! for 100 Answer: land, labor, capital, entrepreneurial ability Back to the Game Board

Factor This !for 200 Question: A firm wishing to maximize profit would hire this quantity of a resource. Check Your Answer

Factor This! for 200 Answer: MRP = MRC Back to the Game Board

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 Back to the Game Board

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 Back to the Game Board

Factor This for 500 Question: 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: MP L /P L = MP C /P C Back to the Game Board

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. Check Your Answer

Price taker,heart breaker for 100 Answer: Barriers to entry Back to the Game Board

Price Taker, Heart Breaker for 200 Question: Product price for a firm in perfect competition is established here Check Your Answer

Price Taker, Heart Breaker for 200 Answer: The Market Back to the Game Board

Price Taker, Heart Breaker for 300 Question: For a perfectly competitive firm, this is the relationship between price and marginal revenue Check Your Answer

Price Taker, Heart Breaker for 300 Answer: Equal Back to the Game Board

Price Taker, Heart Breaker for 400 Question: The demand graph for a perfectly competitive firm has this elasticity Check Your Answer

Price taker, Heart breaker for 400 Answer: Perfectly Elastic Back to the Game Board

Price taker, Heart breaker for 500 Question: Above AVC, this graph is the same as the firm’s supply graph Check Your Answer

Price taker, Heart Breaker for 500 Answer: MC Back to the Game Board

To Market we go for 100 Question: Of monopolistic competition and oligopoly, the market which has fewer dominant firms Check Your Answer

TO market we go for 100 Answer: Oligopoly Back to the Game Board

To market we go for 200 Question: The prisoner’s dilemma helps explain the actions of firms in this market Check Your Answer

TO market we go for 200 Answer: oligopoly Back to the Game Board

TO market we go for 300 Question: The 2 markets in which a firm earns a normal profit at long-run equilibrium Check Your Answer

TO market we go for 300 Answer: Perfect competition, monopolistic competition Back to the Game Board

TO market we go for 400 Question: 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 Back to the Game Board

To market we go for 500 Question: If a monopolist is to be able to practice perfect price discrimination, these 2 additional conditions must be present Check Your Answer

To market we go for 500 Answer: Buyer segregation and no resale Back to the Game Board

At the Margin for 100 Question: To maximize profit or minimize cost, a firm should produce that quantity such that this is true. Check Your Answer

At the Margin for 100 Answer: MR = MC Back to the Game Board

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. Check Your Answer

At the Margin for 200 Answer: Law of Diminishing Marginal Utility Back to the Game Board

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. Check Your Answer

At the Margin for 300 Answer: Marginal Revenue Product Back to the Game Board

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 Back to the Game Board

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. Check Your Answer

At the margin for 500 Answer: Marginal Product Back to the Game Board