AP Micro Final Review

Front

In order to maximize profit a monopolist produces what quantity?

Back

Where Marginal Cost is equal to Marginal Revenue

Front

What type of market DOES NOT have deadweight loss? Oligopoly, Monopoly, Perfect Competition, Monopolistic Competition

Back

Perfect Competition

Front

Oligopoly is connected to which concept?

Back

Game Theory

Front

What happens to price and quantity in the market for hot dogs if the price of buns (a complement) rises?

Back

P decrease, Q decrease

Front

What can the government do in this situation to move D1 to D2? Options: Tax buyers, Tax sellers, Provide subsidy to buyers, Provide subsidy to sellers

Back

Provide subsidy to buyers

Front

Demand for running shoes is elastic, if a producer wants to increase total revenue they should...

Back

decrease price

Front

Which will always be a greater number? Economic profit, Accounting profit

Back

Accounting profit

Front

What is the per unit tax in the graph?

Back

10

Front

What is the DWL created by the tax?

Back

100

Front

Jeff earns $50,000 a year and pays 25% tax and Beth earns $100,000 and pays 12.5% tax, this is an example of what type of tax?

Back

Regressive