AP®︎ Microeconomics: Topic 3.3 Practice Test
Prepare for your quiz, test, or the AP exam with focused practice questions on Topic 3.3 of AP Microeconomics – Long-Run Production Costs.
Questions List
Topic 3.3
Question 1 Easy
This question tests the following: PRD-1.A.9
What is the definition of long-run costs?
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 3.3: Long-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.9
In the long run, firms can adjust all their inputs, and as a result, all costs become variable.
Essential Knowledge: PRD-1.A.10
The relationship between inputs and outputs in the long run is described by the scale of production—increasing, decreasing, or constant returns to scale.
Essential Knowledge: PRD-1.A.11
The long-run average total cost is characterized by economies of scale, diseconomies of scale, or constant returns to scale (efficient scale).
Essential Knowledge: PRD-1.A.12
The minimum efficient scale plays a role in determining the concentration of firms in a market and the market structure.
