AP®︎ Microeconomics: Topic 5.4 Practice Test
Prepare for your quiz, test, or the AP exam with focused practice questions on Topic 5.4 of AP Microeconomics – Monopsonistic Markets.
Questions List
Topic 5.4
Question 1 Easy
This question tests the following: PRD-4.D.1
What is a monopsony?
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 5.4: Monopsonistic Markets
Learning Objective: PRD-4.D
a. Define (using graphs as appropriate) the characteristics of monopsonistic markets. b. Explain (using graphs where appropriate) the profit-maximizing behavior of firms buying labor (with other inputs fixed) in monopsonistic markets. c. Calculate (using data from a graph or table where appropriate) measures representing the profit-maximizing behavior of firms buying labor (with other inputs fixed) in monopsonistic markets.
Essential Knowledge: PRD-4.D.1
In a monopsonistic labor market, a typical firm hires additional labor as long as the marginal revenue product is greater than the marginal factor (resource) cost (the wage of a new unit of labor plus the wage increase given to all existing labor).
Essential Knowledge: PRD-4.D.2
When a typical firm hires additional workers in a monopsonistic labor market, the marginal factor (resource) cost is greater than the supply price of labor.
