A-LevelEconomicsThe price system and the microeconomy9708/32 · May/June 2017 · Q71 Mark
A firm estimates that, all else remaining unchanged, an increase in its output will result in an equal proportionate increase in its revenue. What can be concluded from this?
- A firm estimates that, all else remaining unchanged, an increase in its output will result in an equal proportionate increase in its revenue. What can be concluded from this? A The demand curve for the firm's product is horizontal. B The firm operates in a monopolistically competitive market. C The price elasticity of demand for the firm's product is -1. D The supply of the firm's product is perfectly inelastic.[1]
Mark scheme
Marking points from the official mark scheme (May/June 2017). The mark or mark type is shown in brackets.
- [1] A
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