Review long-run costs and economies of scale for AP Microeconomics and try 2 free AP-style practice questions. 18 questions on this topic in AP Micro · Unit 3 · Production, Cost, and the Perfect Competition Model.
Vanmoor’s concert-ticket printing firm tripled every input it uses and recorded the change in output shown below.
| Input level | Output (tickets printed) |
|---|---|
| 90 units | 6,000 |
| 270 units | 24,000 |
Based on this data, which of the following best describes the firm's returns to scale?
A childcare firm's minimum efficient scale is the smallest level of output at which
Full practice for AP Micro · Unit 3 · Production, Cost, and the Perfect Competition Model: timed tests, step-by-step explanations for every answer, and AI grading for free-response questions.
Start practicing freeAnswer, then see why
The price of gasoline rises 10% and the quantity demanded falls 5%. What happens to total revenue?
Not quite. The answer is B.
Why the other options are wrong
AI grading for free-response
Write your FRQ answer and get it scored point by point against the AP rubric, with the line from your answer that earned or missed each point.
Reason: Correctly identifies demand for gasoline as inelastic.
Evidence: "The price of gasoline rises and the quantity falls only a little."
Reason: Graph shows relatively inelastic demand.
Evidence: Draws a steep demand curve.
Reason: Correct new equilibrium price.
Evidence: Shifts supply left, P1 → P2.
Reason: With inelastic demand, a price increase raises total revenue.
Evidence: "Revenue goes down."