Tackle the Test: Free-Response Questions

  1. Question

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    Refer to the table below showing the effects of running television commercials on a firm’s total revenue. Assume that each commercial costs $1,000 to run.

    Rubric for FRQ 1 (5 points)

    1 point: $8,000

    1 point: Yes

    1 point: Because the marginal revenue of $6,000 exceeds the marginal cost of $1,000

    1 point: 5

    1 point: Marginal revenue exceeds marginal cost for the first 5 commercials. Marginal revenue is less than marginal cost for the 6th commercial.

  2. Question

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