AP Microeconomics Unit 3 Review

A market in which a single seller dominates.

• Monopolistic Competition

• Monopoly

• Oligopoly

• Perfect Competition

A market structure in which a few large firms dominate a market.

• Oligopoly

• Monopoly

• Monopolistic Competition

• Perfect Competition

A market structure in which many companies sell products that are similar but not identical.

• Monopolistic Competition

• Oligopoly

• Monopoly

• Perfect Competition

A market structure in which a large number of firms all produce the same product and no single seller controls supply or prices.

• Monopoly

• Monopolistic Comeptition

• Oligopoly

• Perfect Competition

Because a modest price increase has little or no effect, the demand for the product is

• complementary
• inelastic
• elastic
• unit elastic

The level of profit-maximizing output is reached when marginal cost is

• double marginal revenue
• one-half of marginal revenue
• less than marginal revenue
• equal to marginal revenue

Rent payments and property taxes would be counted as

• total cost
• variable costs
• fixed costs
• marginal costs

Profits will be maximized when marginal revenue

• is double marginal cost
• equals marginal cost
• is one-half marginal cost
• exceeds marginal cost

In a market economy, a high price is a signal for

• producers to supply more and consumers to buy less.
• producers to supply less and consumers to buy more.
• government to intervene to protect consumers.
• producers to supply less and consumers to buy less.

What is the difference between Accounting (Normal) Profit and Economic Profit?

• Merchandise Costs

• Opportunity Cost

• Labor Cost

• Expenses