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A-LevelEconomicsThe price system and the microeconomy9708/32 · Feb/Mar 2017 · Q91 Mark

A firm is operating in perfect competition. What will be the effect on the firm's revenue if it increases its output by 5%?

(a)A Its revenue will be unchanged. B Its revenue will increase by 5% C Its revenue will increase by less than 5%. D Its revenue will increase by more than 5%.[1]

Mark scheme

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

[1] Answer: B

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About this question

Topic: The price system and the microeconomy, A-Level Economics (syllabus 9708). Structured question, 1 mark.
Source: A-Level Economics, Feb/Mar 2017 Paper 3 Variant 2, question 9.

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