A-LevelEconomicsTheory of the Firm / Costs of ProductionOct/Nov 2017Paper 3 Q21 Mark
In 2015, a large mining company said it would reduce the number of staff by 6000 and sell its less profitable mines in an attempt to become more efficient. If it is successful, what is most likely to happen to its costs? total fixed cost | total variable cost | average cost --- | --- | --- A | fall | fall | fall B | fall | fall | no change C | fall | no change | fall D | no change | fall | fall
📋 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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