AP®︎ Microeconomics: Topic 3.6 Practice Test
Prepare for your quiz, test, or the AP exam with focused practice questions on Topic 3.6 of AP Microeconomics – Firms’ Short-Run Decisions to Produce and Long-Run Decisions to Enter or Exit a Market.
Questions List
Topic 3.6
Question 1 Easy
This question tests the following: PRD-2.A
What is a key characteristic of a perfectly-competitive market?
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 3.6: Firms’ Short-Run Decisions to Produce and Long-Run Decisions to Enter or Exit a Market
Learning Objective: PRD-2.A
Explain (using graphs or data where appropriate) firms’ short-run decisions to produce positive output levels, or long-run decisions to enter or exit a market in response to profit-making opportunities.
Essential Knowledge: PRD-2.A.1
In the short run, firms decide to operate (i.e., produce positive output) or shut down (i.e., produce zero output) by comparing total revenue to total variable cost or price to average variable cost (AVC).
Essential Knowledge: PRD-2.A.2
In the absence of barriers to entry or exit, in the long run (i.e., once factors that are fixed in the short run become variable), firms enter a market in which there are profit-making opportunities and exit a market when they anticipate economic losses.
