AP微观经济模拟卷一Free Response Question

Free-Response Questions
Planning time—10 minutes
Writing time—50 minutes
At the conclusion of the planning time, you have 50 minutes to respond to the following three questions. Approximately half of your time should be given to the first question and the second half should be divided evenly between the remaining two questions. Be careful to clearly explain your reasoning and to provide clear labels to all graph axes and curves.
1.Bob's Beans is a perfectly competitive soybean producer. The
short-run price of soybeans is currently below average total cost, but above Bob's shut-down point.
ing two correctly labeled graphs, show the soybean market
side-by-side with Bob's Beans. Clearly indicate which graph
represents the market and which represents Bob's Beans. In
your graphs, identify:
i.Price and quantity in the soybean market.
ii.Price and quantity for Bob's Beans.
iii.The area of economic profit or loss for Bob's Beans.
B.In a new set of side-by-side graphs for both the market and
Bob's Beans, show the longrun adjustment in each of the
following:
i.Price and quantity in the soybean market.
ii.Price and quantity for Bob's Beans.
C.Suppose now that Bob's Beans is a monopoly producer of
soybeans. In a correctly labeled graph, show a
profit-maximizing monopolist and indicate each of the
following:
i.Price
ii.Output
iii.The area of economic profit or loss for Bob's Beans.
2.Molly's lemonade stand employs only labor and lemons to produce
lemonade. The table below shows how total production changes at different combinations of labor and lemons. Lemonade sells in a competitive market at $1 per cup.
A.In competitive input markets, each hour of labor costs $6 to
employ and each pound of lemons costs $2 to employ. If Molly
has a $14 budget for hiring inputs, identify the least-cost
combination of labor and lemons. Explain your reasoning.
B.At the least-cost combination of labor and lemons, identify
each of the following:
i.The output produced.
ii.The economic profit earned.
C.Identify the profit-maximizing quantities of labor and
lemons. At the profit-maximizing quantities of labor and
lemons, identify each of the following:
i.The output produced.
ii.The economic profit earned.
3.The production of pork on large corporate hog farms generates
pollution that seeps into the ground and can pollute the local well-water supply.
A.From society's perspective, use marginal analysis to explain
how the competitive market creates a misallocation of
resources in the market for pork.
B.In a correctly labeled graph, illustrate the market for pork
and identify:
i.The market equilibrium price and quantity of pork.
ii.The socially optimal price and quantity of pork.
C.Recommend an appropriate policy that would correct for the
misallocation of resources in the pork industry.。