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Question 18N.3.HL.TZ0.1b.ii

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Date November 2018 Marks available [Maximum mark: 2] Reference code 18N.3.HL.TZ0.1b.ii
Level HL Paper 3 Time zone TZ0
Command term Calculate Question number b.ii Adapted from N/A
b.ii.
[Maximum mark: 2]
18N.3.HL.TZ0.1b.ii

Firm A produces cartons of coffee. Figure 1 illustrates the firm’s total cost (TC) and variable cost (VC) at different output levels per month.

Figure 1

Figure 2 illustrates the average total cost (ATC), average variable cost (AVC) and marginal cost (MC) at different output levels for Firm B, which produces cans of tea.

(b.ii)

Using Figure 2, calculate the total costs when 55 cans per month are produced.

[2]

Markscheme

30 × 55

Identification of ATC at $30 or any valid working is sufficient for [1].

= $1650

An answer of $1650 or 1650 (without working) is sufficient for [1].

NB If the candidate identifies ATC as $29 or $31, (with a final answer of $1595 or $1705) this should be fully rewarded.

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