DP Economics
Question 20N.3.HL.TZ0.1f.i
| Date | November 2020 | Marks available | [Maximum mark: 2] | Reference code | 20N.3.HL.TZ0.1f.i |
| Level | HL | Paper | 3 | Time zone | TZ0 |
| Command term | Calculate | Question number | f.i | Adapted from | N/A |
f.i.
[Maximum mark: 2]
20N.3.HL.TZ0.1f.i
Firm B is a monopoly producer of diamonds. Figure 3 illustrates its demand (D), marginal revenue (MR), average total cost (ATC) and marginal cost (MC) curves at different output levels.
(f.i)
Using Figure 3, calculate the economic profit when Firm B is maximizing its profits.
[2]
Markscheme
20 (20 − 15)
Any valid working is sufficient for [1].
= $100
An answer of $100 or 100 without workings is sufficient for [1].
For full marks to be awarded, the response must provide valid working and include correct units.
NB Answers that include “per gram” may be accepted.
Examiners report
Well-answered. The majority of candidates identified the profit-maximizing level of output and calculated profit correctly.
