9 min read
This study guide covers factor markets in AP Microeconomics, focusing on the factors of production (land, labor, capital, entrepreneurship) and their respective payments (rent, wage, interest, profit). It explains derived demand, labor demand and supply, and the law of diminishing marginal returns. Key calculations include Marginal Resource Cost (MRC), Marginal Product (MP), and Marginal Revenue Product (MRP), culminating in the profit maximization rule of MRP = MRC. The guide also includes practice questions and exam tips.
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Question 1 of 10
In a factor market, what do households supply to businesses? 🤔
Finished goods and services
Factors of production
Consumer demand
Government regulations