AP Microeconomics Practice Test 17

Test Information

Question 12 questions

Time 14 minutes

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1. If firms are entering an industry that is monopolistically competitive, we would expect

2. Monopolistic competition is said to be productively inefficient because

3. One of the reasons that the government discourages and regulates monopolies is that

4. What is one reason why the government discourages collusion between large firms in the same industry?

5. In a competitive labor market for housepainters, which of the following would increase the demand for housepainters?

6. If a monopsony labor market suddenly were transformed into a perfectly competitive labor market, how would the wage and employment change?

7. Which of the following is most likely to be true in the long run for a monopoly firm?

8. The table below describes employment and production of a firm.

The marginal revenue product of the fourth unit of labor is equal to

9. The table below describes employment and production of a firm.

If the wage paid to all units of labor is $20, how many units of labor are employed?

10. An industry described as an oligopoly would most likely have

11. A minimum wage in the market for fast-food workers is likely to produce

12. In order to hire the least-cost combination of labor and capital, the firm must do which of the following?