A-LevelEconomicsThe price system and the microeconomy9708/33 · May/June 2018 · Q61 Mark
Firms X, Y and Z are profit maximising private firms. X operates in a perfectly competitive industry, Y in a monopolistically competitive industry and Z is a single monopolist. Which statement is correct?
- AOnly X satisfies the condition for allocative efficiency.
- BOnly X faces no barriers to entry in the long run.
- COnly Y and Z can make a supernormal profit in the long run.
- DOnly Z has a product differentiation.
Mark scheme
Marking points from the official mark scheme (May/June 2018). The mark or mark type is shown in brackets.
- [1] A
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