Ap Microeconomics Multiple Choice.Final Exam Test 2026\2027.
If the marginal cost of producing the first unit of some good is $20 and the marginal
cost of producing the second unit is $30, the average variable cost of producing 2
units is
$25
Marginal revenue product of labor
additional amount of revenue a firm can generate by hiring one additional unit of labor
Two factors that change Marginal Revenue Product of Labor
Marginal productivity of labor, price of good produced by labor
characteristics of public goods
non excludable, non rivalrous
Economy produces TV and shoes. What can cause production possibility curve to shift
outward?
A) decrease in demand for shoes
B) increase in labor force
c) change in consumer taste for tv
D) increase in prices of resources to produce both goods
E) increase in price of both goods
B) increase in labor force
if firm is experiencing economies of sale, which will decrease as output increases
A) fixed cost
B) long run total cost
c) marginal cost
D) long run average total cost
E) marginal revenue
D) long run average total cost
which is true for mono comp in long run?
a) earns normal profit
b) price = marginal cost
c) allocatively efficient
, Ap Microeconomics Multiple Choice.Final Exam Test 2026\2027.
d) price taker
e) produce at min average total cost
a) earns normal profit
marginal resource factor cost is
a) change in total resource cost caused by production of 1 more unit of output
b) change in total revenue cause by addition of 1 more unit of a resource
c) change in total resource cost caused by addition of one more unit of resource
d) total resource cost divided by number of inputs used
c) change in trc by one more unit of resource
what is true about msc and mpc in a negative externality
msc>MSP
which of the following is a result of increasing returns to sale?
a) upward sloping short run mc curve
b)downward sloping marginal physical product of labor curve
c) downward sloping long run average total cost curve
d) diseconomies of sale
e)diminishing returns
c) downward sloping atc curve
if the government imposes a per-unit tax on the output of a monopoly with a
downward-sloping demand curve, the burden of the tax will be
a) borne entirely by consumers
b)borne entirely by monopolist
c) borne entirely by government
d)shared by government and monopolist
e) shared by consumer and monopolist
e) shared by consumer and monopolist
which of the following is a result of increasing returns to sale?
a) upward sloping short run marginal cost curve
b) downward-sloping marginal physical product of labor curve
c) downward sloping long run average total cost curve
d) diseconomies of sale
e) diminishing returns
If the marginal cost of producing the first unit of some good is $20 and the marginal
cost of producing the second unit is $30, the average variable cost of producing 2
units is
$25
Marginal revenue product of labor
additional amount of revenue a firm can generate by hiring one additional unit of labor
Two factors that change Marginal Revenue Product of Labor
Marginal productivity of labor, price of good produced by labor
characteristics of public goods
non excludable, non rivalrous
Economy produces TV and shoes. What can cause production possibility curve to shift
outward?
A) decrease in demand for shoes
B) increase in labor force
c) change in consumer taste for tv
D) increase in prices of resources to produce both goods
E) increase in price of both goods
B) increase in labor force
if firm is experiencing economies of sale, which will decrease as output increases
A) fixed cost
B) long run total cost
c) marginal cost
D) long run average total cost
E) marginal revenue
D) long run average total cost
which is true for mono comp in long run?
a) earns normal profit
b) price = marginal cost
c) allocatively efficient
, Ap Microeconomics Multiple Choice.Final Exam Test 2026\2027.
d) price taker
e) produce at min average total cost
a) earns normal profit
marginal resource factor cost is
a) change in total resource cost caused by production of 1 more unit of output
b) change in total revenue cause by addition of 1 more unit of a resource
c) change in total resource cost caused by addition of one more unit of resource
d) total resource cost divided by number of inputs used
c) change in trc by one more unit of resource
what is true about msc and mpc in a negative externality
msc>MSP
which of the following is a result of increasing returns to sale?
a) upward sloping short run mc curve
b)downward sloping marginal physical product of labor curve
c) downward sloping long run average total cost curve
d) diseconomies of sale
e)diminishing returns
c) downward sloping atc curve
if the government imposes a per-unit tax on the output of a monopoly with a
downward-sloping demand curve, the burden of the tax will be
a) borne entirely by consumers
b)borne entirely by monopolist
c) borne entirely by government
d)shared by government and monopolist
e) shared by consumer and monopolist
e) shared by consumer and monopolist
which of the following is a result of increasing returns to sale?
a) upward sloping short run marginal cost curve
b) downward-sloping marginal physical product of labor curve
c) downward sloping long run average total cost curve
d) diseconomies of sale
e) diminishing returns
