纽约州高级安置济学教师资源手册教育会.pdfVIP

UNIT

LONGFREE-RESPONSEAnswer

3MicroeconomicsSAMPLEQUESTIONSKey

AnswerstoSampleLongFree-ResponseQuestions

*1.Inaparticularproductmarket,thereisonlyonesellerandtherearesignificantbarrierstoentry.

(A)Explainhowthisfirmdeterminesitsequilibriumoutputandprice.

(B)Explainwhetherthisfirmisproducingtheeconomicallyefficientlevelofoutput.Inyour

answerincludeabriefdefinitionofeconomicefficiency.

GradingRubric:Part(A)=6points,Part(B)=3points

Part(A)Componentsofagoodanswer:

(i)Becausethefirmisamonopoly,itfacesadownward-slopingdemandcurve.

(ii)Becauseitsdemandcurveisnegativelysloping,itsmarginalrevenuecurvewillbemore

steeplyslopingdownward.

(iii)BringinmarginalcosttodetermineoutputatMR=MC.

(iv)Recognizethattheprofit-izingpointisMR=MC.

(v)ReadpricefromthedemandcurveattheoutputwhereMR=MC.

InallocatingpointsforPart(A),give1pointforeachof(i)through(iv)and2pointsfor(v).

Part(B)Componentsofagoodanswer:

(i)Adefinitionofeconomicefficiency(eitherallocativeefficiencyrequiresP=MCorpro-

ductiveefficiencyisproducingatminimumATC)

(ii)Correctlyrelatingthedefinitiontothemonopolysituation.Amonopolistisnotefficient

byeitherdefinition.

InallocatingpointsforPart(B),give1pointfortheefficiencydefinitiona