AP Microeconomics

Front

A monopoly can price discriminate between two groups of consumers if each group has

Back

a different willingness to pay.

Front

Sue's Surfboards currently rents 15 surfboards an hour. Sue's total revenue from the 15 surfboards is

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$150

Front

For the unregulated, single-price monopoly shown in the figure above, when its profit is maximized, output will be

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4 units per year and the price will be $6.

Front

For this monopolist, what is the area of consumer surplus? Options: ABHJ, AJGC, ARJ, ARJE

Back

ARJ

Front

Total revenue for this monopoly is represented by area: 0CGE, 0AJE, AJHB, BAJH

Back

0AJE

Front

If this monopolist is given a lump-sum subsidy its output would

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remain at E. A lump-sum subsidy does not shift the firm's MC curve.

Front

Economic profits for this monopoly are represented by area: 0CGE, 0AJE, AJHB, BAJN, EHKL

Back

AJHB

Front

This monopoly will maximize profits at what price? Options: A, B, C, R, M

Back

A

Front

A monopolist introduces a technological innovation that lowers the marginal cost and average cost of production. The price of the good and the quantity are most likely to change in which of the following ways?

Back

P=Decrease; Q=Increase

Front

For the firm shown in the graph above, the short-run, profit-maximizing strategy would be to set output at:

Back

Q1, price at P3, and earn an economic profit