Tackle the Test: Free-Response Questions

  1. Question

    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

    Rubric for FRQ 1 (9 points)

    image

    1 point: Axes are correctly labeled.

    1 point: The demand curve is labeled and negatively sloped.

    1 point: The marginal revenue curve is labeled, negatively sloped, and below the demand curve.

    1 point: The profit-maximizing quantity is labeled on the horizontal axis where MC = MR.

    1 point: Price is determined on the demand curve above the point where MC = MR.

    1 point: The average total cost curve is labeled and U-shaped.

    1 point: Average total cost is above price at the profit-maximizing output.

    1 point: The marginal cost curve crosses the average total cost curve at the lowest point on the average total cost curve.

    1 point: The firm will produce despite a loss in the short run if P ≥ AVC.

  2. Question

    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