Question bank / Advanced Placement / AP Microeconomics AP Microeconomics: Unit 5: Factor Markets Original, AI-authored English practice with worked guidance. Selected topics only; independent teacher review is pending. This is not a complete syllabus, official past-paper collection or predicted exam score. SubjectScout is not affiliated with or endorsed by College Board. SAT practice is not a full adaptive test; AP practice does not simulate an entire exam.
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All topics Unit 1: Basic Economic Concepts (2) Unit 2: Supply and Demand (6) Unit 3: Production, Cost, and the Perfect Competition Model (2) Unit 4: Imperfect Competition (2) Unit 5: Factor Markets (3) Unit 6: Market Failure and the Role of Government (2) Official AP framework reference (framework only, not a source of copied questions).
Topic All topics Unit 1: Basic Economic Concepts Unit 2: Supply and Demand Unit 3: Production, Cost, and the Perfect Competition Model Unit 4: Imperfect Competition Unit 5: Factor Markets Unit 6: Market Failure and the Role of Government Practice view All questions Unanswered Bookmarked Review mistakes Difficulty All levels Foundation Standard Challenge Search questions
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Loading saved progress Question 6 · Unit 5: Factor Markets · standard
A firm sells output in a perfectly competitive market for $5 per unit and hires workers at a competitive wage of $45 per day. With other inputs fixed, successive workers add 14, 11, 8, and 5 units per day; later workers add still fewer. How many workers maximize profit? A. 1B. 3C. 4D. 2Check answer Question 15 · Unit 5: Factor Markets · foundation
Demand for an industry's output increases, raising its competitive output price. Worker productivity is unchanged. The industry's labor supply is unchanged and upward sloping; labor demand is downward sloping. Other determinants are fixed. What is the predicted change in the competitive labor market? A. Labor supply shifts right, lowering wages and raising employment.B. Labor demand shifts right, raising wages and employment.C. Labor demand shifts left, lowering wages and employment.D. There is only movement along unchanged labor demand, with no wage change.Check answer Question 16 · Unit 5: Factor Markets · challenge
A monopsonist must pay all workers the same wage. Its labor supply is w = 10 + L, marginal factor cost is MFC = 10 + 2L, and marginal revenue product is MRP = 40 - L. Treat labor as continuous and assume no minimum wage. Which employment and wage maximize profit? A. L = 15; w = $25B. L = 10; w = $30C. L = 10; w = $20D. L = 20; w = $30Check answer All Advanced Placement subjects
