A-LevelEconomicsThe price system and the microeconomy9708/31 · Oct/Nov 2017 · Q71 Mark
The diagram shows a firm's cost and revenue curves. [Diagram] The firm embarks on a successful $100 million advertising campaign. How will this affect its costs and revenue curves?
- MR curve AR curve MC curve AC curve A shifts to right shifts to right shifts up unchanged B shifts to right shifts to right unchanged shifts up C unchanged unchanged shifts up unchanged D unchanged unchanged unchanged shifts up[1]
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.
Mark scheme
Marking points from the official mark scheme (Oct/Nov 2017). The mark or mark type is shown in brackets.
- [1] B
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