Question 1
If a lump-sum tax is imposed on a monopolistically competitive firm, which of the following will happen to the price and quantity sold in the market?
Correct Answer:
Price and quantity will remain unchanged.
Explanation:
Correct answer: Price and quantity will remain unchanged.
Question 2
Which of the following is true of oligopolies? I. They make strategic decisions considering competitors’ actions. II. There are low barriers to entry. III. They are neither allocatively nor productively efficient. IV. They are “price takers” in the market.
Correct Answer:
I and III only
Explanation:
Correct answer: I and III only
Question 3
After the unregulated, profit-maximizing monopolist takes over, the consumer surplus is
Correct Answer:
ABG
Explanation:
Correct answer: ABG
Question 4
If this is a perfectly competitive market, the consumer surplus would be area
Correct Answer:
ACF
Explanation:
Correct answer: ACF
Question 5
The “fair-return” price of the regulated monopolist would be
Correct Answer:
P3
Explanation:
Correct answer: P3
Question 1
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About this Exam

Prepare with the AP Microeconomics Unit 4 Practice Test practice quiz. This question bank includes 19 questions covering price, firm, competition, market, and monopolist. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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AP Microeconomics Unit 4 Practice Test

This practice set contains 19 questions from the matching question bank and focuses on price, firm, competition, market, and monopolist. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.

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