AP Microeconomics 1.6: Marginal Analysis
Use marginal analysis to compare additional benefits and costs, select an optimal activity level, and separate current decisions from past sunk costs.
- Syllabus
- Effective Fall 2025
- Course
- AP Microeconomics
CBA-2.B—a. Define marginal analysis and related terms. b. Explain a decision using marginal analysis (using a table or a graph when… question 1
[Maximum number: 1]
Deskward is a typical profit-maximizing firm that produces and sells wooden desks in a
constant-cost, perfectly competitive market that is in long-run equilibrium.
If the monthly rent, a fixed cost, on Deskward's factory building increases, what will happen
to the firm's profit-maximizing quantity in the short run? Explain.
| B Point 5 | State that Deskward's profit-maximizing quantity will not change in the short run and explain that a change in a fixed cost does not affect the firm's marginal cost or marginal revenue. | 1 point |
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