Economics 9708 · AS & A Level · 7.6

7.6 — practice question

The diagram illustrates the cost and revenue curves for a firm in monopolistic competition in long-run equilibrium. Which statements accurately describe this firm’s performance? (i) the firm is operating with excess capacity; (ii) the firm is fully exploiting available economies of scale.

  • Ano; no
  • Bno; yes
  • Cyes; yes
  • Dyes; no

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI