A-LevelEconomicsMarket StructuresOct/Nov 2019Paper 3 Q101 Mark
Which statement about the 'kinked demand curve' model of oligopoly is incorrect? A The kink in the demand curve of each firm is based on expectations about other firms' responses to changes in its price. B The marginal revenue curve of the firm has a vertical segment at the market price. C The model explains how the equilibrium market price is determined. D The model suggests price stickiness within a certain range of marginal costs.
📋 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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