A-LevelEconomicsThe price system and the microeconomy9708/32 · May/June 2017 · Q101 Mark

A firm in monopolistic competition that is producing at its profit maximising output is making a loss in the short run. For it to continue in production, what must be correct about its average revenue (AR), marginal revenue (MR) and average variable cost (AVC)?

A firm in monopolistic competition that is producing at its profit maximising output is making a loss in the short run. For it to continue in production, what must be correct about its average revenue (AR), marginal revenue (MR) and average variable cost (AVC)? A AR = MR; AVC > AR B AR = MR; AVC < AR C AR > MR; AVC > AR D AR > MR; AVC < AR[1]

Mark scheme

Marking points from the official mark scheme (May/June 2017). The mark or mark type is shown in brackets.

On Oracle Prep you can write or photograph your own answer and have it marked by AI against this mark scheme, with feedback on what you missed.

Topic: The price system and the microeconomy, A-Level Economics (syllabus 9708). Structured question, 1 mark.
Source: A-Level Economics, May/June 2017 Paper 3 Variant 2, question 10.

Questions and mark schemes are from past examination papers and remain the copyright of the exam board. How Oracle Prep builds its content