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A-LevelEconomicsTheory of the Firm (Production and Costs)May/June 2017Paper 3 Q101 Mark

A firm operates at the maximum point on its average product curve. What necessarily follows? A Average variable cost is at a minimum. B Marginal cost is at a minimum. C Marginal product is at a maximum. D Total profit is at a maximum.

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About This A-Level Economics Question

This structured question appeared in the Cambridge A-Level Economics (9708) May/June 2017 examination, Paper 3 Variant 1. It tests the topic of Theory of the Firm (Production and Costs) and is worth 1 mark.

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