Tiêu đề Practice - Unit5 FRQ QB.pdf ✅

In the United States, textiles are sold in two separate and perfectly competitive markets. The textiles produced in the United States are sold in market A, and imported textiles are sold in market B. (a) Explain how the supply curve for textiles produced in the United States will be affected by each of the following. (i) A decrease in the number of firms in the United States producing textiles (ii) An increase in the price of textiles Assume that textiles produced in market A and market B are close substitutes (b) Using one graph for market A and another for market B, show and explain how a substantial increase in the tariff on textiles imported into the United States will affect each of the following. (i) Equilibrium price and quantity of textiles sold in market B (imported textiles) (ii) Equilibrium price and quantity of textiles sold in market A (textiles produced in the United States) Assume that the labor market for textile workers is perfectly competitive. Following a decrease in the supply of textile workers, the wage rate of textile workers increases. (c) Using a new graph for market A, show and explain how a substantial increase in the wage rate of textile workers will affect the equilibrium price and quantity of textiles sold in market A. (d) Using a graph, show and explain how the increase in the wage rate of textile workers and the change in the equilibrium price and quantity of textiles you identified in part (c) will affect each of the following. (i) A firm's demand for labor (ii) A firm's supply of labor 1. Respond to all parts of the question. AP MICROECONOMICS Test Booklet All About U5 FRQ AP Microeconomics Page 1 of 60
Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly labeled diagram must have all axes and curves clearly labeled and must show directional changes. If the question prompts you to “Calculate,” you must show how you arrived at your final answer. Bobby’s Bakehouse is the only bakery in a small remote town, and Bobby’s Bakehouse is the only employer of bakers in the area. The graph below shows the market for bakers with the marginal factor (resource) cost curve, the labor supply curve, and the marginal revenue product curve. (a) If the wage rate is $13, state whether there will be a shortage or a surplus of bakers and calculate its size. Show your work. (b) Identify the profit-maximizing number of bakers that Bobby’s Bakehouse will hire. Explain using the labeling on the graph. (c) Identify the profit-maximizing wage rate that Bobby’s Bakehouse will pay its bakers. Explain using the labeling on the graph. (d) If the marginal product of bakers increases, what will happen to the quantity of output produced by Bobby’s Test Booklet All About U5 FRQ Page 2 of 60 AP Microeconomics
Bakehouse? Explain. (e) Assume instead that Bobby’s Bakehouse uses both labor and capital in its production of baked goods. The marginal product of the last unit of labor hired is 16 baked goods per hour and the marginal product of the last unit of capital rented is 50 baked goods per hour; the hourly wage rate for labor is $8 and the hourly rental price for capital is $5. To minimize the cost of producing its current level of output, should Bobby’s Bakehouse rent more capital, less capital, or the same amount of capital? Explain using marginal analysis. 2. Respond to parts of the question. Test Booklet All About U5 FRQ AP Microeconomics Page 3 of 60
Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly labeled diagram must have all axes and curves clearly labeled and must show directional changes. If the question prompts you to “Calculate,” you must show how you arrived at your final answer. Central Manufacturing Company is the only manufacturing facility in a small remote town, and Central Manufacturing Company is the only employer of machinists in the area. The graph below shows the market for machinists with the marginal factor (resource) cost curve, the labor supply curve, and the marginal revenue product curve. (a) If the wage rate is $63, state whether there will be a shortage or a surplus of machinists and calculate its size. Show your work. (b) Identify the profit-maximizing number of machinists. Explain using the labeling on the graph. (c) Identify the profit-maximizing wage rate that Central Manufacturing Company will pay its machinists. Explain using the labeling on the graph. (d) If the marginal product of machinists increases, what will happen to the quantity of output produced by Central Test Booklet All About U5 FRQ Page 4 of 60 AP Microeconomics