AP®︎ Microeconomics: Topic 3.2 Practice Test
Prepare for your quiz, test, or the AP exam with focused practice questions on Topic 3.2 of AP Microeconomics – Short-Run Production Costs.
Questions List
Topic 3.2
Question 1 Easy
This question tests the following: PRD-1.A.4
What is a fixed cost?
What You’re Being Tested On:
Explore the learning objectives taken directly from the College Board’s AP® Microeconomics Curriculum. Ensure you’re prepared for the exact topics covered on the AP® exam, in-class tests, and quizzes, and gain confidence in your mastery of the material.
Topic 3.2: Short-Run Production Costs
Learning Objective: PRD-1.A
a. Define (using graphs where appropriate) key terms and concepts relating to production and cost. b. Explain (using graphs where appropriate) how production and cost are related in the short run and long run. c. Calculate (using data from a graph or table as appropriate) the various measures of productivity and short-run and long-run costs.
Essential Knowledge: PRD-1.A.4
Fixed costs and variable costs determine the total cost.
Essential Knowledge: PRD-1.A.5
Marginal cost, average (fixed, variable, and total) cost, total cost, and total variable cost change as total output changes, but total fixed cost remains constant at all output levels, including zero output.
Essential Knowledge: PRD-1.A.6
Production functions with diminishing marginal returns yield an upward-sloping marginal cost curve.
Essential Knowledge: PRD-1.A.7
Specialization and the division of labor reduce marginal costs for firms.
Essential Knowledge: PRD-1.A.8
Cost curves can shift in response to changes in input costs and productivity.
