AP Microeconomics Study Guide: Key Concepts for the 2026 Exam
AP Microeconomics focuses on individual markets, firm behavior, and market structures. Here’s how to prepare for the 2026 exam.
Supply, Demand, and Elasticity
Master supply and demand curves, equilibrium, and the effects of price controls (ceilings and floors). Understand price elasticity of demand and supply, and how elasticity affects total revenue and tax incidence.
Costs of Production
Know the different cost curves: marginal cost, average total cost, average variable cost, and average fixed cost. Understand economies of scale, diminishing marginal returns, and the relationship between short-run and long-run costs.
Market Structures
Compare perfect competition, monopoly, monopolistic competition, and oligopoly. For each structure, know the profit-maximizing rule (MR=MC), how to identify profit or loss on a graph, and the long-run equilibrium outcome.
Market Failures
Study externalities, public goods, and how government intervention (taxes, subsidies, regulations) can correct market failures. Understand deadweight loss, consumer and producer surplus, and the efficiency of competitive markets.
