What this practice covers
These questions are drawn from past AP Economics papers and filtered to imperfect competition. You answer, you find out immediately whether you were right, and you get the reasoning for the correct option and for each distractor. Wrong answers go to a mistakes locker so you can come back to exactly those.
Practice is free. You need an account only so your progress and your mistakes are still there next time.
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What examiners see students get wrong here
These are the errors that cost marks on imperfect competition, taken from our own topic notes. Read them before you practise and you will recognise the traps in the questions.
- Drawing MR on top of, or above, the demand curve.
- Reading the monopoly price off the MR curve instead of up to demand.
- Assuming a monopoly must earn a profit.
- Putting the monopoly's output on the inelastic portion of demand.
- Claiming monopolistic competition earns long-run economic profit, entry removes it.
- Forgetting excess capacity in monopolistic competition.
- Drawing long-run monopolistic competition with demand crossing ATC rather than tangent to it.
- Saying price discrimination always harms consumers, total output actually rises.
Revise it first
If any of the above is unfamiliar, work through the notes before practising: Imperfect Competition revision notes.