A-LevelEconomicsTheory of the FirmMay/June 2019Paper 3 Q81 Mark
The diagram shows short-run (SRAC) and long-run (LRAC) cost curves for a firm. [Figure 8] Which statement is correct? A When each of the three SRAC curves is U-shaped it shows the existence of economies of scale. B When the LRAC curve is upward-sloping beyond output OQ it shows the existence of diseconomies of scale. C When the minimum point of SRAC2 is below that of SRAC₁ it shows the existence of the law of variable proportions. D When the minimum point of SRAC2 is below that of SRAC3 it shows the existence of economies of scale.
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
🎯 Mark Scheme Breakdown
Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.
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