Economics 9708 · AS & A Level · Short-run costs

Short-run costs — practice question

(a)[3]

Identify, from the article, three difficulties the UK encounters in producing electricity.

(b)[6]

Explain what is meant by equity and assess whether, according to the article, subsidising wind-power electricity production is likely to be equitable.

(c)[5]

The article claims that African agricultural markets are not competitive. Explain what is meant by a competitive market and comment on whether you agree with the judgement.

(d)[6]

Discuss whether the article provides evidence that could lead you to conclude that large businesses are harmful to an economy.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: Wind-power electricity is cheap to generate, but constructing the power stations costs a lot

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