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of its demand curve? Explain.
(e) Assume that regulators set an output of 11 units.
(i) Is the monopolist earning positive economic profit? Explain.
(ii) Is the monopolist earning positive accounting profit? © 2011 The College Board.
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-2- 2011 AP® MICROECONOMICS FREE-RESPONSE QUESTIONS
(f) Assume instead that regulators impose a price ceiling of $22.
(i) What is the marginal revenue for the eighth unit?
(ii) What quantity will be produced?
(g) Assume instead that the monopolist practices perfect price discrimination (also called first-degree price
(i) What quantity will be produced?
(ii) What will be the value of the consumer surplus? 2. Assume that the market for avocados is perfectly competitive. The typical firm is earning positive economic
profit in th...
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