AP®︎ Microeconomics: Topic 4.3 Practice Test
Prepare for your quiz, test, or the AP exam with focused practice questions on Topic 4.3 of AP Microeconomics – Price Discrimination.
Questions List
Topic 4.3
Question 1 Easy
This question tests the following: PRD-3.B
What is 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 4.3: Price Discrimination
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.8
A firm with market power can engage in price discrimination to increase its profits or capture additional consumer surplus under certain conditions.
Essential Knowledge: PRD-3.B.9
With perfect price discrimination, a monopolist produces the quantity where price equals marginal cost ( just as a competitive market would) but extracts all economic surplus associated with its product and eliminates all deadweight loss.
