Tackle the Test: Free-Response Questions

1. Question

   BTufHbRm65914nesZ+1MsQaUuN8S0YBoqQ0YDOkmxqRWZC9ySJtG4h8TWcqoA9+7UB13m1wLr67+OVQ41F0lZ4XGcXN2ghC5h5eTvzycLiJzn/sZM1x8D6prruXj9XmFR6y9Ur0WqRLo0l6Ww0GchghMNafuLAhmv7G9E1VATT9JXt+cEL9zYTy9VArhvr/sa0CsPBm1tjRmM1n0KuuR2MiT9p5JcMIIyDg+Gwf43Xd7GSd+qSy9t6b3UV7btf7ri9V3H5gMZuUvPptpOBODiKqo8kZOU6FJBAbwObTITmQegkovfQaHkB36Nhp/UMpn

   Rubric for FRQ 1 (7 points)

   

   1 point: Correctly labeled axes

   1 point: Downward-sloping demand curve

   1 point: Marginal revenue curve below the demand curve

   1 point: Loss-minimizing quantity below where MC = MR

   1 point: Loss-minimizing price on demand curve above where MC = MR

   1 point: U-shaped average total cost curve above the demand curve at every quantity

   1 point: Correct loss area shaded

2. Question

   ttaq4LQ4VmmRCVvfh0jIAllh/l3ozzyLt4gkFPeiSxHkOXh5wgQYcjlLsegebgK5I9j/PzJklyS7wW5hiCgGIgVgtT3zxRb6eWmmB//8YFMTBwUV65pNN6FWGqS5wc+GC1FYFXWNIApQ98+vTJxSP9fGEbuw2OwDCVm51GnchCJz2Y2lPJF5vELKQ8nNpwNThKzRtr3fkwRvXNqIz8Np620lsfRpg0VKApVICFh5V130N3YHEdZlYIYd+FXNccBB1o8Enj6H0PrNpwuB2nzltUZdCy9QV18byarX1pwZ6Pvkba5n+A0phfp4jQwPW+MapFlyOgCtHWK9pagSM1oFczYdIUaJtMODm0TJilmbEkWKOXergjZoJdbf7LtqYmGlkPD8x8j58yEA7Y/JVy2688b6/Est+r/7YiSSwZ1qhevXuRoQTUhy5g==