Economics 9708 · AS & A Level · Maximum and minimum prices

Maximum and minimum prices — practice question

From the diagram, MC and AC are the marginal and average cost curves of a profit-maximising monopolist, while MR and AR are its original marginal and average revenue curves. Which distance would show excess demand if the government imposes a maximum price of P?

  • AJK
  • BKL
  • CKM
  • DLM

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