A-LevelEconomicsThe price system and the microeconomy9708/33 · Oct/Nov 2019 · Q101 Mark
The diagram shows the cost and revenue curves of a firm in a contestable market. cost, revenue P 1 P P2 P 3 P4 P 5 MR AC MC AR Ο Q1 Q5 Q2 Q3 Q4 quantity It is currently charging the profit-maximising price OP1. In order to deter entrants the firm decides to change its aim to sales maximising. What price will achieve this new aim? A OP2 B OP3 C OP4 OP5
- (a)The diagram shows the cost and revenue curves of a firm in a contestable market. cost, revenue P 1 P P2 P 3 P4 P 5 MR AC MC AR Ο Q1 Q5 Q2 Q3 Q4 quantity It is currently charging the profit-maximising price OP1. In order to deter entrants the firm decides to change its aim to sales maximising. What price will achieve this new aim? A OP2 B OP3 C OP4 OP5[1]
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Mark scheme
Marking points from the official mark scheme (Oct/Nov 2019). The mark or mark type is shown in brackets.
- [1] (Correct option is C)
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