AP Microeconomics Question of the Day

Test your knowledge with a hand-picked multiple-choice question.

Assume the firm operates in the short-run. Use the following chart for questions 1-5:

UnitsTotal RevenueTotal cost
0015
11118
22023
32730
43239
53650
63962
73975

Suppose market factors have caused the firm to become the only supplier of widgets in the area, effectively giving the firm monopoly power. The most likely effect of this would be:

  1. The price of the good would rise
  2. The monopoly would price the good equal to marginal cost
  3. The quantity of the good would rise.
Select an answer and click Check.
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