<p>Yes, there can be deadweight loss when a firm is producing more than the socially optimum level of output; that is called an over allocation of resources. So, the deadweight loss would be to the right of market equilibrium (or for the firm where D=MC)</p>
<p>SHOOT! Got a few wrong already :(… Can anybody remind me what the other questions were and let me compare some answers?</p>
<p>Oh, for question 3, did you guys say excise tax was worse on the consumers because they’re most inelastic? And the total government revenue would be 2 x (Pb - Ps)?</p>
<p>It definitely can’t be 2 X (Pb - Ps). You’re multiplying two price values and no quantity. I put down 2 X Qt, but it could also be (Pb - Ps) X Qt. </p>
<p>Well, I knew it was quantity, but I remember from somewhere that 2 was the quantity they’d produce after the tax.</p>
<p>OHhhhhhh never mind! Yeah, it was 2 x QT</p>
<p>Geez, let’s just do all the questions when they release them online ._______. I’m a bit nervous.</p>
<p>-deleted comment-</p>
<p>These FRQ’s were different from mine! Who had Form G?</p>
<p>Okay, I’m gonna try to do number 1 again.</p>
<p>a.)
i.) 4
ii.) $40
iii) 8 units
b.) No, because as quantity increases, LRATC does not decrease
c.)
i.) -$100? (I said -$10 :()
ii.)$250
iii.) I don’t exactly know how to calculate deadweight loss with overallocation. I assumed it was $0 because the economic loss the monopoly incurs is counteracted by the big increase in consumer surplus.
d.) 6 units
e.)
i.) $160
ii.) $0</p>
<p>can you post the question as well?</p>
<p>I have the link here:</p>
<p><a href=“http://media.collegeboard.com/digitalServices/pdf/ap/ap14_frq_Microeconomics.pdf”>http://media.collegeboard.com/digitalServices/pdf/ap/ap14_frq_Microeconomics.pdf</a></p>
<p>For #1:</p>
<p>a.)
i.) 4
ii.) $40
iii) 8 units
b.) No, because as quantity increases, LRATC does not decrease
c.)
i.) -$100?
ii.)$250
iii.)$10
d.) 6 units
e.)
i.) $0
ii.) $0</p>
<p>For 1.e.i, I answered with $120. They’d produce up to 4, and if they perfectly price discriminate, they’d sell at each price level of the demand curve. So revenue = $200, cost = $80, and profit = $120.</p>
<p>I answered 140, because I said they’d produce 8 units, because MR is irrelevant (since each unit has a different marginal revenue). I said: 35+30+25+20+15+10+5 = 140 profit.
(Not sure if right though; 160 makes sense too.)</p>
<p>I said $120. Sorry, I typed it wrong… It’s (60-20) x 8 / 2. Because they want to produce to 8 units if they perfectly price discriminate.</p>
<p>It’s pretty much the “triangle” 60 - 20 - mc=d</p>
<p>@Newdle Isn’t (60-20) x 8 / 2 = 160? Or is that what you meant (if it is, sorry!)?</p>
<p>$160… OH, my God… I am sooooo out of it today. I think I was just done with econ right after the test, haha! yes, it should be $160. Yeah, you want to find the area of that triangle. I’m hoping to God I didn’t screw up on the actual frqs. I rechecked them like 10x anyway because I had so much free time, so I think it’s just post-ap syndrome. Does anybody wanna do the other 2?</p>
<p>b) Equal (minimum wage in perfectly competitive factor market)
c) iii. Increases</p>
<p>idk lol i probs failed dis test :c</p>
<p>^Yep; I put the same answers as you @capitalamerica </p>