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Question 20N.3.HL.TZ0.1b.i

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Date November 2020 Marks available [Maximum mark: 1] Reference code 20N.3.HL.TZ0.1b.i
Level HL Paper 3 Time zone TZ0
Command term Identify Question number b.i Adapted from N/A
b.i.
[Maximum mark: 1]
20N.3.HL.TZ0.1b.i

Firm A, which is operating in a perfectly competitive market, produces almonds. Figure 1 illustrates Firm A’s average total cost (ATC), average variable cost (AVC) and marginal cost (MC) curves at different output levels.

(b.i)

The market price of almonds is $11 per kilogram. Using Figure 1, identify the quantity of almonds Firm A must produce in order to maximize profits.

[1]

Markscheme

21 kg OR 21 is sufficient for [1].

Examiners report

Most candidates recognized the profit-maximizing level of output at 21kg.

Syllabus sections