DP Economics
Question 20N.3.HL.TZ0.1f.ii
| Date | November 2020 | Marks available | [Maximum mark: 2] | Reference code | 20N.3.HL.TZ0.1f.ii |
| Level | HL | Paper | 3 | Time zone | TZ0 |
| Command term | Calculate | Question number | f.ii | Adapted from | N/A |
f.ii.
[Maximum mark: 2]
20N.3.HL.TZ0.1f.ii
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.ii)
Using Figure 3, calculate the total revenue when Firm B is maximizing its revenue.
[2]
Markscheme
30 × 15
Any valid working is sufficient for [1].
= $450
An answer of $450 or 450 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
Stronger candidates recognised that revenue is maximized where MR= 0 and used this knowledge to calculate total revenue correctly. However, a significant minority were unable to apply this theory correctly.
