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A-LevelEconomicsTheory of the Firm (Market Structures and Efficiency)May/June 2017Paper 3 Q81 Mark

The diagram shows the cost and revenue curves of a firm in imperfect competition. At which output will the firm produce if it wishes to make some supernormal profit to satisfy its shareholders and at the same time to allocate resources efficiently? [Figure 8.1]

Q: What topic does this question test?

This question tests Theory of the Firm (Market Structures and Efficiency) in A-Level Economics (syllabus code 9708). It is worth 1 mark.

📋 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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About This A-Level Economics Question

Topic

This structured question tests Theory of the Firm (Market Structures and Efficiency) in A-Level Economics (syllabus code 9708). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Economics May/June 2017 examination, Paper 3 Variant 1.

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