Unformatted text preview: ver all economic
(i) Based on the diagram, determine the break-even output.
(ii) At the output you determined in part (d)(i), is the demand relatively elastic, relatively inelastic,
unit elastic, perfectly elastic, or perfectly inelastic?
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-2- 2010 AP® MICROECONOMICS FREE-RESPONSE QUESTIONS (Form B)
(e) If a company begins to provide access to the island via commercial watercraft, what will happen to each
of the following in the diagram?
(i) The demand curve for bridge crossings
(ii) The profit-maximizing output
(f) Suppose the long-run average total cost is strictly downward sloping. Would it be efficient to build
a second bridge? Explain. Marginal Revenue
Number of Workers Product per Day 1 $450 2 $500 3 $450 4 $400 5 $300 6 $100 2. The table above gives the short-run marginal revenue product of labor per day for a perfectly competitive firm.
The firm is currently selling its product at the market pr...
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This note was uploaded on 02/03/2014 for the course ECONOMIC 112 taught by Professor Van le during the Winter '12 term at American Internation College.
- Winter '12
- van le