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Question 21M.3.HL.TZ0.g.iii

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Date May 2021 Marks available [Maximum mark: 2] Reference code 21M.3.HL.TZ0.g.iii
Level HL Paper 3 Time zone TZ0
Command term Calculate Question number g.iii Adapted from N/A
g.iii.
[Maximum mark: 2]
21M.3.HL.TZ0.g.iii

Figure 3 shows the marginal cost (MC) curve, the average variable cost (AVC) curve and the average total cost (ATC) curve for a firm in the widget industry.

Figure 3

Calculate the firm’s monthly total fixed costs if output equals 50 000 units per month.

[2]

Markscheme

At 50 000 units, AFC = 15.6 − 12 = 3.6

Any valid working is sufficient for [1].

FC = 3.6 × 50 000 = $180 000

An answer of $180 000 or 180 000 (without working) is sufficient for [1].

Examiners report

Generally well-answered. Some candidates neglected to multiply the fixed cost per unit ($3.6) by the quantity (50 000) but gave an answer of $3.60.

Syllabus sections