AP®︎ Microeconomics: Topic 4.2 Practice Test
Prepare for your quiz, test, or the AP exam with focused practice questions on Topic 4.2 of AP Microeconomics – Monopoly.
Questions List
Topic 4.2
Question 1 Easy
This question tests the following: PRD-3.B.5
Which of the following is a characteristic of a monopoly?
What You’re Being Tested On:
Explore the learning objectives taken directly from the College Board’s AP® Microeconomics Curriculum. Ensure you’re prepared for the exact topics covered on the AP® exam, in-class tests, and quizzes, and gain confidence in your mastery of the material.
Topic 4.2: Monopoly
Learning Objective: PRD-3.B
b. Explain (using graphs where appropriate) equilibrium, firm decision making, consumer surplus, producer surplus, profit (loss), and deadweight loss in imperfectly competitive markets and why prices in imperfectly competitive markets cannot be relied on to coordinate the actions of all possible market participants and can lead to inefficient outputs. c. Calculate (using data from a graph or table as appropriate) areas of consumer surplus, producer surplus, profit (loss), and deadweight loss in imperfectly competitive markets.
Essential Knowledge: PRD-3.B.5
A monopoly exists because of barriers to entry.
Essential Knowledge: PRD-3.B.6
In a monopoly, equilibrium (profit-maximizing) quantity is determined by equating marginal revenue (MR) to marginal cost (MC). The price charged is greater than the marginal cost.
Essential Knowledge: PRD-3.B.7
In a natural monopoly, long-run economies of scale for a single firm exist throughout the entire effective demand of its product.
