2017, Question 3 · 7 points
Monopoly with a negative externality and tax
Read a monopoly graph with private and social cost curves to find the profit-maximizing output and price, spot the externality, find the social optimum, and judge how a corrective per-unit tax changes deadweight loss.
This exam had three free-response questions to answer in a 50 minute writing period after a 10 minute reading period, with about half the time suggested for Question 1 and the rest split evenly between Questions 2 and 3. The current exam has 3 free-response questions in 60 minutes. The skills these questions practice still count.
Lessons this question draws on
1 Read the question
The question is College Board's, from the 2017 exam. It starts on page 4 of the PDF. College Board no longer posts this exam, so it opens from the copy of College Board's PDF that the Internet Archive saved on December 20, 2025.
2 Write your answer
Answer each part the way you would on the exam, in full sentences, with your work shown. Your writing saves as you type.
3 Score it
Score your answer against College Board's scoring guidelines, one point at a time. Give yourself a point only when your answer says what the guideline asks for.
Scoring guidelines (PDF, page 5) What the exam readers saw (Chief Reader report)
Question, scoring guidelines and Chief Reader report: College Board, from the Internet Archive. The title, summary are ours.