AP Microeconomics case studies
AP Microeconomics · Put your knowledge to work in context.
AP Microeconomics is a College Board Advanced Placement exam that assesses how well you understand the economic concepts covered in the AP Microeconomics course. According to College Board, the exam tests your ability to define economic principles and models, explain given economic outcomes, determine outcomes of specific economic situations, and model economic situations using graphs or visual representations. It is intended for students who have taken the AP Microeconomics course, though the exam is open to any student preparing for it. The exam is hybrid digital: you complete multiple-choice questions and view free-response questions in the Bluebook testing app, then handwrite your free-response answers in paper exam booklets. The AP Microeconomics case studies are 5 cases and about 1,823 words.
1Tax Incidence in the Market for Handcrafted Lamps
The market for handcrafted lamps is perfectly competitive. At the current equilibrium price of 60, 1,000 lamps are sold per month.
383 words, about 2 min2Monopoly Pricing with Fixed Costs
A pharmaceutical company has a patent on a new drug, giving it a monopoly. The firm's total cost function is TC = 1000 + 10Q, where Q is the number of doses produced.
406 words, about 2 min3Negative Externality in Electricity Production
A coal-fired power plant produces electricity and emits pollution. The private marginal cost of producing electricity is PMC = 20 + 2Q, where Q is in megawatt-hours (MWh).
441 words, about 2 min4Labor Market with Monopsony
A company is the sole employer in a small town. The labor supply curve is given by W = 10 + 2L, where W is the wage and L is the number of workers.
323 words, about 2 min5Public Goods and Free Riding
A small neighborhood with 10 residents is considering building a community garden. The garden is a public good.
270 words, about 1 min