It’s B (that’s why my teacher said at least…maybe I circled it wrong). Can you explain why?</p>
cost 18 dollars to make you… you make 20 dollars for selling it. 20 - 18 =2</p>
omg im going to fail…
i limited it to choices B and C</p>
it cant be A because well thats obvious
it cant be D or E because perfectly competitive firms are pricetakers</p>
how do you know if its $2 greater though? it didn’t state the cost for 100 units at $20 each before it increased by $18.</p>
If a perfectly competitive firm sells 100 units at $20/unit, but then the 101st unit is at $18/unit for MC, that means that MC has dropped $2, increasing profits by $2 than the previous 100 units.</p>
oh i see
thanks</p>
Ah ok makes sense, these questions are a little too wordy sometimes.
Here’s another one I was iffy on:</p>
In a perfectly competitive labor market for nurses, all of the following statements are true EXCEPT:
a. The imposition of an effective minimum wage will result in unemployment.
b. An increase in the marginal product of nurses will increase the demand for nurses and increase wages.
c. An increase in the supply of nurses will create unemployment and leave wages unchanged.
d. An increase in the demand for health care will increase the demand for nurses and increase wages.
e. Revoking work permits for foreign nurses will increase wages of domestic nurses.</p>
Does anyone know how harsh the curve is?</p>
80% for a 5 for Micro, 78% ish for a 5 for Macro…life sucks.</p>
Is it C? If demand remains constant, increasing the supply curve will increase quantity and lower price. Therefore, wouldn’t wages change at least?</p>
@Appleandrice, is that a macroeconomics or microeconomics question?</p>
Yea it’s C…I seriously need to stop overthinking these questions and just draw the graph out, I would’ve gotten that right. 80% to get a 5 for micro…great…75% for macro…uh. I just need a 4 for credit hopefully I can do that.
Here’s another question (I’m just asking all of the questions I missed from one of the released micro exams my teacher gave me)
Assume that total fixed costs are $46, that the average product of labor is 5 units when 10 units of output are produced, and that the wage rate is $12. If labor is the only variable input, what is the average total cost of producing 10 units of output?
A) $2
B)$5
C) $7
D) $9
E) $12</p>
@SchieffenPlan, all of the questions I’ve asked are micro. If you have any macro questions please share because I need a lot of practice in that as well.</p>
Could someone explain the rational expectations theory to me in terms of ad/as? My book doesn’t really go over it and I’ve seen MC on it</p>
never mind i got the answer</p>
it’s C $7</p>
Does anyone have a study guide or something of everything summed up they could share with me? Or any practice tests? Btw, this is for macro.</p>
Does anyone have the answers/a saved copy of the AP Microeconomics Audit exam posted earlier? it seems to be down now, despite the fact that it was working fine earlier… -.- PM me please and thanks :)</p>
APL=TPL/L
5=10/L
L=2 units</p>
TVC=price to maintain labor
TVC=(L)(wage)
TVC=(2)(12)
TVC=24</p>
TC=TVC+TFC
TC=24+46
TC=70</p>
ATC=TC/Q
ATC=70/10
ATC=7</p>
Therefore, C is the answer.</p>
yay my first question that i got right</p>
I got 51/60 and 49/60 on 2000 and 2005 respectively… anyone else think the 5 to a 5 tests = harder?</p>
I have another question…</p>
Which of the following is true of a monopolistically competetive firm in long-run equilibrium?</p>
A. Price is greater than marginal cost, and marginal revenue is equal to average total cost.
B. Price is greater than MR, and MC is = to ATC.
C. Price is grater than MR, and marginal cost is greater than ATC.
D. MR = MC, and p = ATC.
E. MR is greater than MC, and p = atc.</p>
thanks.</p>