AP Econ Practice Test Question

Test Preparation AP Test Preparation
1

<p>K so i was taking a practice test and am gonna need help on this question. Sorry, its sort of long =P. </p>

<p>Which of the following would determine the marginal revenue product of an input used in a perfectly competitive output market?
I. Dividing the change in Total Revenue by the change in the input
II. Dividing the change in Marginal Revenue by the change in the output
III. Multiplying the marginal revenue product by the marginal revenue of the output.
IV. Multiplying marginal revenue by the price of the output </p>

<p>(A) I only
(B) II only
(C) III only
(D) I and III only
(E) II and IV only </p>

<p>Notice the question says in a perfectly competitive output market (would it make a difference if it didn't?)
Also can you explain how you got the answer.</p>

2

<p>^bump^.......</p>

3

<p>isn't choice I the definition of MRP?</p>

4

<p>Yea, i was thinking I as well, just wanted to make sure it wasn't some weird thing.
Thanks for the help.</p>

5

<p>this seems like a pretty difficult question though. the only thing I remember from econ without having to look stuff up is that profit max => MR = MC :P</p>

6

<p>iam really it is E. because the last one is definitely right..</p>