A-LevelEconomicsThe price system and the microeconomy9708/33 · Oct/Nov 2017 · Q101 Mark
A perfectly competitive firm is currently producing at a level of output where its marginal cost is above both its average total cost and the market price.
- 10What would be the effect on price and output if the firm were to maximise its profit? effect on output | effect on price A decrease | increase B decrease | unchanged C increase | decrease D increase | unchanged[1]
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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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