<p>Does anyone know approximately how many one can get wrong on the MC and still get a 5? I took a practice test (fake one, so I don’t know how accurate it was), and got 53/80 correct.</p>
<p>There are 60 MC questions, not 80.</p>
<p>45/60 with perfect FRQ’s is around the minimum for a 5 on Micro. The Micro curve for a 5 is harsh.</p>
<p>53/60, apologies. APUSH was on my mind. Thanks though!</p>
<p>Micro you need about an 83% and macro you need about an 80% for 5’s.
Definitely not an easy curve, but the tests aren’t much more difficult than tests you’d see in class.</p>
<p>Hey guys, I’m doing past FRQs and I have a little question here:
Doesn’t socially efficient output happen at P=ATC while allocative efficient output is at P=MC? But the 2008 FRQ #3 says just the opposite. Could anybody please look into that?</p>
<p>OK I think I understand this now:
socially optimal output and allocative efficient output both happen at P=MC, and economic profits are 0 at P=ATC,
is that correct?</p>
<p>Socially optimum is allocatively efficient. Both are P=MC with 0 DWL. P=ATC is average cost pricing or productively efficient for a perfectly competitive firm in the product market with 0 profits.</p>
<p>Does anybody have some good, yet concise review material that they would be able to share with me? I’m just looking for stuff to look over for the next couple of days.</p>
<p>@JordanSaidWhat thank you ;)</p>
<p>I’m self-studying as we speak. I’m using Barons. It’s alright I guess. How are yall doing?</p>
<p>there’s no 0.25 point penalty for mc right?</p>
<p>Nope
I haven’t done anything all semester. Cramming in 2 days. I did a practice MC and got 32/60. That could be like a solid 3 with the FR. I’m shooting for a 4</p>
<p>Anyone know any really important formulas and definitions to remember?</p>
<p>Socially optimum point/allocative efficiency
Fair return point
Total Revenue = P x Q
Elasticity (all types including income and cross) (+ how to calculate)
MR = MC always profit max. point
Shutdown
Derived demand
MSB vs. MSC vs. MPB vs. MPC (externalities)
PPC
Marginal returns: increasing, decreasing, constant
Economies of scale (inc. dec., const.)
Diminishing marginal utility vs. diminishing marginal returns
Perfectly competitive vs. Monopolistically competitive vs. Monopoly vs. Oligopoly vs. Monopsony vs. Perfectly competitive resource market
Consumer and Producer Surplus
Deadweight loss
Price Floor vs. Price Ceiling
Def. of economics (xD)
Opportunity cost
Dominant strategy
Normal vs. Inferior goods
Comparative advantage
Substitute goods vs. complementary goods
Lump sum tax
MRP = MRC vs. MR = MC
…etc…</p>
<p>Protip: Triple check the game theory charts when determining dominant strategies. It’s really easy to misread them and get the wrong answer.
Also, assuming that the lower total benefit outcome is the Nash equilibrium is wrong. It’s possible for a participant in the chart to have NO dominant strategy, which means things then go to Tit-for-tat for that person, and they follow the other person’s dominant strategy. So be warned!</p>
<p>A per-unit tax just raises MC in the long run and a lump sum just raises ATC, correct?</p>
<p>Hopefully we won’t have a FRQ as bad as Q3 last year… ugh. Let’s keep the cramming thread going!!</p>
<p>Basically know all the terms in your review book.
Oligopoly etc…</p>
<p>I have 2 more chapters in my Barron’s!. Micro seems alot shorter than Macro.</p>
<p>Can anyone breakdown what happens in the short run and in the long run for perfectly competitive markets and monopolies? I’m having trouble making it stick.</p>
<p>Is it necessary to know each of the four main anti-trust legislation acts or is it okay to just know it’s the primary method by which government combats market power/monopolies?</p>
<p>I think it’s just necessary to know the method gov uses. I don’t even know what anti-trust acts ur talking about. LOL. I’m learning about imperfect competitions right now.</p>
<p>Freedom-in the short run, supply cannot adjust for changes in demand. In the long run, producers can adjust to the changes in demand. </p>
<p>I forget what happens in the long run for monopolies. I think they gain zero economic profits.</p>