AP® Microeconomics Free-Response Questions Set 2 - Section II - Time - 1 Hour

Sep 30, 2026

AP® Microeconomics Section II includes three free-response questions for a 1-hour assessment, focusing on long-run competitive market equilibrium and firm-level decision making. Students analyze a constant-cost, perfectly competitive desk producer, including graphs, subsidy and binding price floor effects, and economies versus diseconomies of scale using calculated average total costs. A labor market question evaluates a single-employer setting under minimum wage and demand changes, requiring calculations and factor-cost reasoning. The final question uses a marginal utility table to support utility-maximization analysis.

LanguageEnglish

CategoryExam

FormatPDF

Pages5

Reading Time13 min

AccessFree to download

Section II

Question 1

Question 2

Question 3

2025 AP® Microeconomics Free-Response Questions Set 2 © 2025 College Board. College Board, Advanced Placement, AP, AP Central, and the acorn logo are registered trademarks [of College Board. Visit College Board on the web: collegeboard.org](of College Board. Visit College Board on the web: collegeboard.org). AP Central is the official online home for [the AP Program: apcentral.collegeboard.org](the AP Program: apcentral.collegeboard.org). MICROECONOMICS SECTION II TIME – 1 HOUR Directions: Section II has 3 questions and lasts 1 hour. You may use the available paper for scratch work and planning, but you must write your answers in the free-response booklet. Label parts (e.g., A, B, C) and sub-parts (e.g., i, ii, iii) as needed. Use a pencil or a pen with black or dark blue ink to write your responses. Include correctly labeled graphs, if useful or required, in explaining your answers. A correctly labeled graph 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. A calculator is allowed in this section. You may use a handheld calculator that is approved for this exam or the calculator available in this application. You may pace yourself as you answer the questions in this section, or you may use these optional timing recommendations: It is suggested that you spend the first 10 minutes reading all of the questions and planning your answers. Then, it is suggested that you spend about 25 minutes on question 1 and about 12 minutes each on questions 2 and 3. You can go back and forth between questions in this section until time expires. The clock will turn red when 5 minutes remain—the proctor will not give you any time updates or warnings. Note: This exam was originally administered digitally. It is presented here in a format optimized for teacher and student use in the classroom. © 2025 College Board. [Visit College Board on the web:](Visit College Board on the web: collegeboard.org 2)[ collegeboard.org](Visit College Board on the web: collegeboard.org 2)[ 2](Visit College Board on the web: collegeboard.org 2) AP MICROECONOMICS 2025 n FREE-RESPONSE QUESTIONS 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. A. Draw correctly labeled side-by-side graphs for the wooden desk market and for Deskward and show each of the following. i. The market equilibrium price and quantity, labeled PM and QM , respectively ii. Deskward’s profit-maximizing price and quantity, labeled PF and QF , respectively iii. Deskward’s average total cost curve consistent with long-run equilibrium, labeled ATC B. 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. C. Suppose the government is considering granting a per-unit subsidy to producers of wooden desks. On your market graph in part A, show the short-run effect of a per-unit subsidy on each of the following. i. The new market equilibrium price and quantity of wooden desks, labeled P* and Q*, respectively ii. The area representing the total cost of the subsidy to the government, shaded completely D. Instead of the per-unit subsidy, suppose the government imposes a binding price floor in the market for wooden desks. Will the price floor result in a shortage of wooden desks, a surplus of wooden desks, or neither? Explain. E. Deskward also produces chairs. Deskward increases its production from 500 chairs to 600 chairs, and its long-run total cost increases from $80,000 to $108,000 . i. Calculate Deskward’s long-run average total cost of producing 500 chairs. Show your work. ii. As Deskward increases production from 500 chairs to 600 chairs, is Deskward experiencing economies of scale, diseconomies of scale,

FAQs

How much time is allocated for Section II of the AP® Microeconomics free-response questions?

Section II lasts 1 hour and contains 3 questions.

What graphing and labeling requirements apply to Section II questions?

Students must include correctly labeled graphs when useful or required, with all axes and curves clearly labeled and directional changes shown.

What topics are covered in Question 1?

Question 1 covers a perfectly competitive firm in long-run equilibrium, including market equilibrium, profit-maximizing output, effects of rent changes, per-unit subsidies, binding price floors, and scale effects using average total cost calculations.

Sep 30, 2026

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