?

AP® Microeconomics

Free Version

Upgrade subject to access all content

Moderate

Monopoly Graph: Identifying Different Prices and Quantities

APMICR-XC9NXG

The graph below represents a monopoly market in which there are no externalities.

Jane Schaefer. Created for Albert.io. Copyright 2016. All rights reserved.

Which of the following is true based on the above graph?

A

P1 is the profit-maximizing price for this firm.

B

P3 is the socially optimal price.

C

P2 is the fair return price.

D

Q2 is the socially optimal quantity.

E

Q3 is the fair return quantity.