ap microeconomics. supply and demand at the margin to market we go price taker, heart breaker factor...
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![Page 1: AP Microeconomics. Supply and Demand At the Margin To market we go Price taker, heart breaker Factor This! 100 200 300 400 500 100 200 300 400 500 100](https://reader034.vdocument.in/reader034/viewer/2022051401/56649ef65503460f94c09e5d/html5/thumbnails/1.jpg)
AP Microeconomics
![Page 2: AP Microeconomics. Supply and Demand At the Margin To market we go Price taker, heart breaker Factor This! 100 200 300 400 500 100 200 300 400 500 100](https://reader034.vdocument.in/reader034/viewer/2022051401/56649ef65503460f94c09e5d/html5/thumbnails/2.jpg)
Supply and
Demand
At the Margin
To market we go
Price taker, heart
breaker
Factor This!
10020
0300400500
1002003004005
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Supply & Demand for 100
Question: The law of this says that price and quantity are inversely related
Check Your Answer
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Supply & Demand for 100
Answer: Demand
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Supply & Demand 200
Question: Of shortage and surplus, the one caused by a price floor
Check Your Answer
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Supply & Demand for 200
Answer: Surplus
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Supply & Demand for 300
Question: If an increase in the price of sugar causes an decrease in demand for cream, the two goods have this relationship to each other.Check Your Answer
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Supply & Demand for 300
Answer: Complimentary Goods
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Supply & Demand for 400
Question: This double shift causes an increase in price and an indeterminate effect on quantity
Check Your Answer
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Supply & Demand for 400
Answer: Decrease supply, increase demand
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![Page 11: AP Microeconomics. Supply and Demand At the Margin To market we go Price taker, heart breaker Factor This! 100 200 300 400 500 100 200 300 400 500 100](https://reader034.vdocument.in/reader034/viewer/2022051401/56649ef65503460f94c09e5d/html5/thumbnails/11.jpg)
Supply & Demand for 500
Question: A sales tax increase has these effects on supply, demand, price, quantity
Check Your Answer
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Supply & Demand for 500
Answer: decrease S, no change D, increase P, decrease Q
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Factor This!for 100
Question: These are the four factors of production
Check Your Answer
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Factor This! for 100
Answer: land, labor, capital, entrepreneurial ability
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Factor This !for 200
Question: A firm wishing to maximize profit would hire this quantity of a resource.
Check Your Answer
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Factor This! for 200
Answer: MRP = MRC
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Factor This for 300
Question: A firm that can hire as many workers as it wants at the equilibrium wage is operating in this type of labor market.Check Your Answer
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Factor This for 300
Answer: Perfectly Competitive
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Factor This for 400
Question: For a monopsonistic firm, this is the relationship between supply for a resource and its MRC.Check Your Answer
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Factor This for 400
Answer: MRC > S
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Factor This for 500Question: A firm using 2
resources, and wishing to minimize costs for a particular quantity of production, would spend its last dollar on each resource so that these were equal.Check Your Answer
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Factor This for 500
Answer: MPL/PL = MPC/PC
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Price taker,heart breaker for 100
Question: Unlike firms attempting to enter a monopolized market, firms in a perfectly competitive market face none of these.
Check Your Answer
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Price taker,heart breaker for 100
Answer: Barriers to entry
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Price Taker, Heart Breaker for 200
Question: Product price for a firm in perfect competition is established here
Check Your Answer
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Price Taker, Heart Breaker for 200
Answer: The Market
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Price Taker, Heart Breaker for 300
Question: For a perfectly competitive firm, this is the relationship between price and marginal revenue
Check Your Answer
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Price Taker, Heart Breaker for 300
Answer: Equal
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Price Taker, Heart Breaker for 400
Question: The demand graph for a perfectly competitive firm has this elasticityCheck Your Answer
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Price taker, Heart breaker for 400
Answer: Perfectly Elastic
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Price taker, Heart breaker for 500
Question: Above AVC, this graph is the same as the firm’s supply graph
Check Your Answer
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Price taker, Heart Breaker for 500
Answer: MC
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To Market we go for 100
Question: Of monopolistic competition and oligopoly, the market which has fewer dominant firmsCheck Your Answer
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TO market we go for 100
Answer: Oligopoly
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To market we go for 200
Question: The prisoner’s dilemma helps explain the actions of firms in this market
Check Your Answer
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TO market we go for 200
Answer: oligopoly
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TO market we go for 300Question: The 2
markets in which a firm earns a normal profit at long-run equilibrium
Check Your Answer
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TO market we go for 300
Answer: Perfect competition, monopolistic competition
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TO market we go for 400Question: This is the
relationship in any less competitive market between average revenue and marginal revenue.Check Your Answer
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TO market we go for 400
Answer: AR > MR
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To market we go for 500Question: If a
monopolist is to be able to practice perfect price discrimination, these 2 additional conditions must be presentCheck Your Answer
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To market we go for 500
Answer: Buyer segregation and no resale
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At the Margin for 100
Question: To maximize profit or minimize cost, a firm should produce that quantity such that this is true.
Check Your Answer
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At the Margin for 100
Answer: MR = MC
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At the Margin for 200
Question: The fact that consumer satisfaction decreases as additional units of a product are consumed is explained by this economic law.
Check Your Answer
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At the Margin for 200
Answer: Law of Diminishing Marginal Utility
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At the Margin for 300
Question: This term is found by calculating the change in total revenue brought about by hiring an additional unit of a resource.
Check Your Answer
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At the Margin for 300
Answer: Marginal Revenue Product
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At the Margin for 400
Question: Price will be equal to this when a firm is producing a quantity at which allocative efficiency is achieved.Check Your Answer
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At the Margin for 400
Answer: Marginal Cost
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At the Margin for 500
Question: The mirror image of marginal cost, this will increase, diminish, and then become negative as additional units of a variable resource are added to a fixed resource.
Check Your Answer
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At the margin for 500
Answer: Marginal Product
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