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A-LevelEconomicsThe price system and the microeconomy9708/31 · May/June 2020 · Q31 Mark

An economist undertakes a cost-benefit analysis of the pollution resulting from a manufacturing process.

  1. (a)Which judgement is most likely to guide any recommendation about the appropriate level of manufacturing output? A that the marginal social cost of manufacturing equals the marginal social benefit B that the marginal cost of pollution is zero C that the total revenue of manufacturing equals the total cost D that the total benefit of pollution is maximised[1]

Mark scheme

Marking points from the official mark scheme (May/June 2020). The mark or mark type is shown in brackets.

  1. [1] A

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About this question

Topic
The price system and the microeconomy, A-Level Economics (syllabus 9708). Structured question, 1 mark.
Source
A-Level Economics, May/June 2020 Paper 3 Variant 1, question 3.

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