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AP Microeconomics Questions And Answers Download

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Q:1-Which of the following statements describes price discrimination?
Mark one answer:

The price of the same product is different for different consumers.
The price of two different products are different for different consumers.
The price of the same product is the same for different consumers.
The price of two different products are the same for different consumers.



Q:2-Suppose a diseconomy of scale exists for a particular firm. If the firm doubles its output, then _____.
Mark one answer:

its long-run average cost will more than double
its short-run average cost will exactly double
its short-run average cost will more than double
its long-run average cost will less than double


Q:3-In order to maximize profits, a firm should continue to produce output until which of the following conditions is met?
Mark one answer:

Marginal revenue equals marginal cost
Total revenue is greater than total cost
Total cost is equal to total revenue
Total revenue is equal to marginal revenue


Q:4-If the market for Good X is in equilibrium, which of the following would NOT cause a decrease in demand for Good X?
Mark one answer:

The number of buyers of Good X decreases.
Consumers expect that the price of Good X will decrease.
The price of a substitute good decreases.
The price of a substitute good increases.


Q:5-A price ceiling that is set above the market equilibrium price is likely to have which of the following effects, if any?
Mark one answer:

A surplus
No effect; price will never equal market equilibrium price
A shortage
No effect; price will equal market equilibrium price.


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Q:6-For a monopolist, marginal cost is equivalent to which of the following?
Mark one answer:

Average total cost
Average fixed cost
Industry supply
Marginal revenue


Q:7-Compared to a perfectly competitive market, a monopolist produces...
Mark one answer:

less of a good and charges a lower price.
less of a good and charges a higher price.
more of a good and charges a higher price.
more of a good and charges a lower price.


Q:8-If a monopolist's marginal cost curve shifts down, what is the expected effect on price and quantity of the monopolist's output?
Mark one answer:

Price decreases, Quantity indeterminate
Price indeterminate, Quantity increases
Price decreases, Output decreases
Price decreases, Output increases


Q:9-A price increase for Good A results in a decrease in the demand for Good B. Based on this information, Goods A and B are most likely...
Mark one answer:

Substitute goods
Public goods
Complementary goods
Inferior goods


Q:10-A natural monopoly differs from a traditional monopoly in what way?
Mark one answer:

Lower average costs than same market with many firms
Can set price by determining quantity of good to be sold
Positive economic profit in the long-run
Maximizes profits



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