Micro 3.7 MR = MC Practice: Econ Concepts in 60 Seconds for Advanced Placement Microeconomics

The video tutorial explains key economic concepts in a short time frame. It covers how to determine the optimal production level for a perfectly competitive firm by calculating marginal cost and comparing it to marginal revenue. The tutorial also demonstrates how to calculate total revenue and profit, emphasizing the importance of stopping production when marginal cost exceeds marginal revenue.

In a perfectly competitive market, what is the primary question a firm needs to answer?

• How to minimize costs?

• How much to produce?

• How to increase demand?

• How to set prices?

What does marginal cost represent in economic terms?

• The fixed cost of production

• The average cost of production

• The change in total cost from producing one more unit

• The total cost of production

How does marginal cost typically behave as production increases?

• It remains constant

• It decreases and then increases

• It continuously decreases

• It continuously increases

In a perfectly competitive market, where should a firm produce to maximize profit?

• Where total cost is lowest

• Where marginal revenue equals marginal cost

• Where total revenue is highest

• Where marginal cost is lowest

What is the profit if the total revenue is $80 and the total cost is $60?

• $40

• $10

• $30

• $20