Question 1
If a firm’s average total cost curve is increasing as output increases, the firm’s marginal cost must be
Correct Answer:
greater than average total cost.
Explanation:
Correct answer: greater than average total cost.
Question 2
A profit-maximizing, perfectly competitive firm is producing where marginal revenue is greater than the marginal cost. What actions should this firm take?
Correct Answer:
Increase the quantity they are producing
Explanation:
Correct answer: Increase the quantity they are producing
Question 3
The table refers to the quantity of hamburgers that can be produced in a day. What is the marginal product of the 4th worker?
Correct Answer:
15
Explanation:
Correct answer: 15
Question 4
There are economies of scale when
Correct Answer:
long-run average total cost decreases as output increases.
Explanation:
Correct answer: long-run average total cost decreases as output increases.
Question 5
With capital fixed at one unit with 1, 2, 3 units of labor added in equal successive units, production of the output increases from 300 (1 unit of labor) to 350 (2 units of labor) to 375 (3 units of labor). Which of the following is a correct interpretation?
Correct Answer:
This is short-run diminishing marginal returns.
Explanation:
Correct answer: This is short-run diminishing marginal returns.
Question 1
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About this Exam

Prepare with the AP Microeconomics Unit 3 Practice Test practice quiz. This question bank includes 24 questions covering cost, firm, marginal, average, and output. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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AP Microeconomics Unit 3 Practice Test

This practice set contains 24 questions from the matching question bank and focuses on cost, firm, marginal, average, and output. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.

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