A-LevelEconomicsBasic economic ideas and resource allocation9708/12 · Oct/Nov 2009 · Q31 Mark
The diagram shows a person's marginal costs and marginal benefits of making trips to the cinema. [Figure]
This question uses a diagram from the original paper, which isn't shown here. Open the full paper from the past papers archive to see it.
ANone, as each extra trip reduces marginal benefit.
BOne, as this maximises the excess of marginal benefit over marginal cost.
CTwo, as this maximises the net benefit of making trips.
DThree, as all trips have a positive marginal benefit.
✓ Correct answer
C: Two, as this maximises the net benefit of making trips.
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