A-LevelEconomicsGovernment microeconomic intervention9708/31 · May/June 2019 · Q171 Mark

The table shows a firm that has four possible methods of production to make its desired output. Each method has a different cost and causes a different amount of pollution. The government rules that polluting firms must buy pollution permits that cost 90 each. Each permit allows the firm to emit 1 tonne of pollution. No pollution can be emitted without a permit. Which method of production has least total cost? cost of production ( per day) pollution caused (tonnes per day) A 320 3 B 380 2 C 480 1 D 700 0

Mark scheme

Marking points from the official mark scheme (May/June 2019). The mark or mark type is shown in brackets.

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Topic: Government microeconomic intervention, A-Level Economics (syllabus 9708). Structured question, 1 mark.
Source: A-Level Economics, May/June 2019 Paper 3 Variant 1, question 17.

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