A-LevelEconomicsThe price system and the microeconomy9708/32 · Feb/Mar 2018 · Q61 Mark

A government imposes a $10 tax on each unit produced of a product. How will this affect the firm? A Its average cost will rise by less than $10. B Its marginal cost will remain unchanged. C Its minimum average cost output will be lower. D Its minimum average cost output will be unchanged.

Mark scheme

Marking points from the official mark scheme (Feb/Mar 2018). The mark or mark type is shown in brackets.

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Topic: The price system and the microeconomy, A-Level Economics (syllabus 9708). Structured question, 1 mark.
Source: A-Level Economics, Feb/Mar 2018 Paper 3 Variant 2, question 6.

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