AP® MICROECONOMICS
2018 SCORING GUIDELINES
Question 1
9 points (4,1,2,2)
(a) 4 points:
One point is earned for drawing a correctly labeled graph for the market with a downward sloping
demand curve and an upward sloping supply curve, and for labeling PM and QM.
One point is earned for drawing a horizontal marginal revenue curve for the firm, at PF.
One point is earned for showing the profit-maximizing quantity at MC=MR, labeled QF.
One point is earned for showing the ATC curve tangent to the MR curve at QF where ATC is at its
minimum.
(b) 1 points:
One point is earned for stating that PM=PF, and for explaining that the firm is a price taker OR the
firm accepts the market equilibrium price as given.
(c) 2 points:
One point is earned for stating that the firm’s output will not change in the short run, and for
explaining that a change in a fixed cost will not affect the firm’s marginal cost OR that rent is not a
variable cost AND will not affect the firm’s marginal cost.
One point is earned for showing an upward shift of the ATC curve and the area representing the
firm’s loss, completely shaded.
(d) 2 points:
One point is earned for stating the number of firms in the market will decrease, and for explaining
that some firms will exit the market as a result of the losses incurred in the short run.
One point is earned for stating that the new market equilibrium quantity will decrease relative to QM
and the new market equilibrium price will increase relative to PM and for explaining that the market
supply will shift to the left.
© 2018 The College Board.
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AP® MICROECONOMICS
2018 SCORING GUIDELINES
Question 2
5 points (2,1,1,1)
(a) 2 points:
One point is earned for stating one source of market failure is related to negative externality and
for explaining that MSC>MPC.
One point is earned for stating one source of market failure is related to monopoly and for
explaining that P>MR.
(b) 1 point:
One point is earned for correctly identifying the profit-maximizing quantity is 150 units and the
profit-maximizing price is $35.
(c) 1 point:
One point is earned for correctly identifying that with the tax the profit-maximizing quantity is
100 units and the profit-maximizing price is $40.
(d) 1 point:
One point is earned for stating that economic advisors would support no government
intervention and for explaining using one of the following:
o without intervention the firm would produce the socially efficient (optimal) quantity of
150 units.
o without intervention the firm would produce a quantity of 150 units where the DWL is
zero.
o without intervention the firm would produce a quantity of 150 units where MSB=MSC.
o with the tax intervention the firm would produce a quantity of 100 units where
MSB>MSC.
© 2018 The College Board.
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AP® MICROECONOMICS
2018 SCORING GUIDELINES
Question 3
7 points (2,1,1,1,2)
(a) 2 points:
One point is earned for drawing a correctly labeled graph of the market for milk with an upward
sloping supply curve and a downward sloping demand curve.
One point is earned for drawing an effective price floor, labeled PF, above the equilibrium price
and for identifying the new quantity of milk, labeled QF, from the demand curve.
(b) 1 point:
One point is earned for stating the market is not allocatively efficient after the price floor is
imposed and for explaining that marginal benefit is greater than marginal cost (MB > MC).
(c) 1 point:
One point is earned for completely shading the area representing the producer surplus.
(d) 1 point:
One point is earned for stating that total consumer spending on milk will decrease, and for
explaining the demand is elastic or that the percentage increase in the price of milk will be less
than the percentage decrease in the quantity demanded.
© 2018 The College Board.
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AP® MICROECONOMICS
2018 SCORING GUIDELINES
Question 3 (continued)
(e) 2 points:
One point is earned for drawing a correctly labeled graph for the egg market with an upward
sloping supply curve and a downward sloping demand curve, and for showing a rightward shift
in the demand curve for eggs.
One point is earned for stating that the two goods are substitutes.
© 2018 The College Board.
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