8 min read
This study guide covers government intervention in markets, focusing on taxes (per-unit vs. lump-sum) and subsidies, and their impact on costs (MC, ATC, AFC). It also explains monopoly regulation, including the unregulated monopoly graph, socially optimal price, and fair-return price, and how these relate to deadweight loss. Graphing and interpreting these concepts are emphasized. Finally, exam tips for AP Microeconomics are provided.
Give us your feedback and let us know how we can improve
Question 1 of 12
🎉 A tax of $2 on each unit of output a firm produces is an example of a:
Per-unit tax
Lump-sum tax
Progressive tax
Regressive tax