Tuesday, December 29, 2009

Two-Minute Drill -- Perfect Competition

Summary: AP Microeconomics perfect competition.

1. What price would LR Competitive equilibrium be on the graph?
2. At Price P3, what area is profit?
3. What point is resource allocative efficient?
4. Below what price would the firm shut down?
5. The difference between ATC and AVC equals _______?
6. What point is productive efficient for the firm?

1. P1 2. P3ABP2. 3. C 4. P 5. AFC

About the Author: Mike Fladlien is an AP Economics teacher from Muscatine High School in Muscatine, Iowa.


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