AP Micro Unit 3 Review

Front

Short run marginal costs eventually increase because of the effects of: increasing marginal product, diminishing marginal product, increasing fixed costs, diseconomies of scale

Back

diminishing marginal product

Front

What is the only curve that continues to fall as output increases? Options: Average Fixed Cost, Average Variable Cost, Average Total Cost, Marginal Cost

Back

Average Fixed Cost

Front

When marginal revenue equals marginal cost, a perfectly competitive firm is

Back

maximizing its profit.

Front

What causes marginal product to increase at an increasing rate in Stage 1? Options: increasing costs, worker specialization, underutilization, fixed resources

Back

worker specialization

Front

The following graph illustrates: The Law of Increasing Costs, The Law of Demand, Circular Flow Diagram of  Mixed Economy, The Marginal Product of Labor

Back

The Marginal Product of Labor

Front

According to the graph, increasing marginal returns occur from

Back

0 to Labor₁

Front

The marginal cost curve typically does which of the following? Options: Increases at a fixed rate., Decreases and eventually increases., Decreases at a decreasing rate., Increases and eventually decreases.

Back

Decreases and eventually increases.

Front

The term for costs that cannot be avoided in the short run

Back

Fixed Cost

Front

Term for costs that change with production

Back

Variable Cost

Front

Extra cost of producing one more unit

Back

Marginal cost