Advanced Placement Economics Chapter 12

Advanced Placement Economics
Chapter 12-16 Test Review
What is the difference between fixed and variable costs? What is their
relationship to short-run and long-run operations? 12.1
On a graph be able to identify the point of diminishing marginal returns.
Know the relationships between marginal, total, and average product .
On a graph be able to identify economies of scale, diseconomies of scale,
and constant returns. 12.3
Know pricing in perfect competition. 13.1
Know the function of short-run marginal cost curves. 12.2
Be able to interpret and analyze profit-maximizing in perfect
competition. 13.1
Explain and determine marginal cost. 12.3
Be able to identify profit, loss, and break-even points graphically in
perfect competition. 13.2
Know short and long-run equilibrium in perfect competition. 13.
Know the elasticity of demand in pure monopoly. 14.2
Be able to interpret on a graph profit- maximization in a monopoly.
Be able to identify consumer surplus, quantity produced, price setting,
etc… on a graph for unregulated pure monopoly. 14.1,2,3
What is allocative and productive efficiency? Think of these in regards
to the 4 Market types.
What are the general characteristics of each of the 4 Market types?
What is a “cartel” and how do firms in a cartel operate? What are their
goals? What would this look like on a graph?
Be able to analyze a pay-off matrix and identify Nash Equilibrium
Why do firms in perfect competition shut down?
What is price discrimination?
What is product differentiation?