Tackle the Test: Free-Response Questions

544

  1. Question

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    Use the data in the table provided.

    Rubric for FRQ 1 (5 points)

    1 point: $18

    1 point: $7

    1 point: $36 - $29 or TR - TC

    1 point: 5 units

    1 point: The optimal output rule states that profit is maximized when MC = MR. Here, MC never exactly equals MR. When this occurs, the firm should produce the largest quantity at which MR exceeds MC. At a quantity of 5, MC = $16 and MR = $18. For the sixth unit, MC = $22 and MR = $18, and because MC > MR, the sixth unit would add more to total cost than it would to total revenue, and it therefore should not be produced.

  2. Question

    0xXu1la1Kzghvv9EahbVZaidokzG+QadL+QDhjga5mZOCczb0YgJEzEQpJmTwb4DKOqSo7ukq0RwFmbRUHSZCKSWzxopYkO6865RDOD4A7ceVXZOsS5O6GBJlt2V2Wl3wSNIG/9eO83SHrMp0LyBZpwcRBD7cZK/bmfFaWigsE4WSKDw0XLGYwPRWW2ek+yfceUe7iWahissLZuGdCky7Z+PfZvJHp14Eadnzk0JkQ8LkfFvihu4lQmQgzmVVSu+6dGZfzzB8J2Nc7RadrWIWOc29ZL+3PrJyIiA45PMTQty+8t+qzxU4HD7TIYneLhP5DL6jdhmAuo+BS0e3P+XbAnqQs52jSnYohrBaHV+yqy/+bB72hbVrVzQtKhbkTx7vYvRbp5763qeHFDtjMSj91Qu6E+OZBHDrEifLXv1Z+29YQzFF0dHHdbdChhQPmaCYf0XK0xXNtx+LM2AD1qEoJq7zCCTMZbeCJoectcns6+MKlaxJW7iQOCDBThtXXCbuYByG4YTDsZctR1UIQidXN6rue9qnWtDL7t3gudvuDAIaxk2Xk2btSKBl7Zd8oI4WYj1w4I8Zwr5yONlM6DE6hhFzvShR5dWjyqkMjX1om1GEqD9s2wo3NpENF1tlPMOVva9McfMyH+n03g+FUQJkv7x42t7otl4LseIZF1I5VczqLmryry7Hn2f5KyMf+qjgcmesJv2JkS2JP1z/kk7W4eFAAaHtrsKqpmYIY6uNEAvysjV28xpnbYlV/3OjYPuFERjYcRiIH+vToVnxO/e3Mc6muo=